GST impact: 12% rate takes a toll on seafood exporters' margins

The exporters are yet to come out with the exact loss figures after the roll-out of the GST

Margins of seafood exporters are likely to take a hit as the sale of duty credit scrips will now attract a hefty 12 per cent goods and services tax (GST) compared with a four per cent VAT (value added tax) or a two per cent CST (central sales tax) levied earlier.

The duty credit scrips are granted as rewards to exporters under the Merchandise Exports from India Scheme (MEIS), introduced in the Foreign Trade Policy 2015-20, and the Service Exports from India Scheme (SEIS) and are adjusted against duties payable to the government. However, if exporters are unable to use