How Can EEPC India Improve GST Refunds and the Rupee-Ruble Exchange?
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Synopsis
In a recent statement, EEPC India praised the GST 2.0 reforms as pivotal for economic advancement while pushing for automated GST refunds to support exporters. With concerns over duty structures and international trade negotiations, the council emphasizes the need for strategic financial solutions.
Key Takeaways
- EEPC India supports GST 2.0 reforms for economic growth.
- Proposes automated GST refunds to aid exporters.
- Calls for a reliable rupee-ruble exchange mechanism.
- Recommends inclusion of steel and auto parts in trade negotiations.
- Urges for a favorable tariff structure for MSMEs.
New Delhi, Nov 26 (NationPress) The Engineering Export Promotion Council (EEPC) India expressed support for the GST 2.0 reforms, viewing them as a vital enhancement for economic growth and the simplification of business operations. The council urged the government to automate the GST refund process.
EEPC India highlighted the ongoing challenges posed by the inverted duty structure in the engineering industry, with bicycles exemplifying the issue: while the finished product is taxed at 5 percent GST, the raw material, steel, incurs an 18 percent tax.
“To resolve this matter, we propose that the GST refund process be entirely automated. We also recommend providing 90 percent of the refunds without prior verification, with the remaining 10 percent contingent on verification. This would enable exporters to better pass on benefits to their customers,” the industry body stated in a release.
Moreover, addressing the payment delays faced by Indian exporters due to sanctions against Russian banks, EEPC India called for a dependable rupee–ruble exchange mechanism.
Additionally, the council suggested incorporating steel into current trade discussions with major partners.
“The enforcement of the 50 percent tariff has notably affected our exports to the United States. We propose that steel, aluminium, and auto parts be included in the BTA negotiations, advocating for a more favorable tariff structure. This is essential for the sustainability of numerous MSMEs,” stated Pankaj Chadha, Chairman of EEPC India.
Regarding trade negotiations with the EU, EEPC India has recommended maintaining existing conditions concerning both quota and out-of-quota steel tariffs.
The EU’s safeguard measures on steel imports, initially set to expire on June 30, 2024, have now been extended for an additional two years, until June 2026. The industry body also pointed out the EU’s carbon pricing as an extra burden on carbon-intensive products, creating hurdles for Indian exporters who depend on traditional energy sources.
Point of View
It's crucial to recognize that the EEPC India's advocacy for automated GST refunds and a reliable currency exchange mechanism reflects broader economic challenges. Their proposals not only seek to enhance operational efficiency for exporters but also highlight the need for strategic partnerships in a globalized market.
NationPress
26/11/2025
Frequently Asked Questions
What is the primary concern raised by EEPC India regarding GST?
EEPC India is primarily concerned about the persistence of inverted duty structures in the engineering sector and advocates for the automation of GST refunds to alleviate these issues.
How does EEPC India propose to improve the GST refund process?
They propose to fully automate the GST refund process and give 90% of refunds without prior verification, reserving the remaining 10% for post-verification.
What trade issues does EEPC India highlight concerning international partners?
EEPC India highlights payment delays due to sanctions on Russian banks and advocates for including steel in trade negotiations with major partners to secure favorable tariffs.
