Sale of scrips under export promotion schemes to attract 12% GST

The premium on the scrips is going to drop as a result of this

Exporters will now have to shell out the goods and services tax (GST) at 12 per cent when selling scrips of export-incentive schemes such as the Merchandise Export from India Scheme (MEIS).

The government on Thursday clarified that scrips received by exporters under the Services Exports from India Scheme and the Incremental Export Incentivization Scheme, apart from the MEIS, will be taxed.

Exporters earn duty credits through the form of scrips at fixed rates of 2 per cent, 3 per cent, and 5 per cent, depending upon the product and country. The earned scrips can be freely transferred to others or sold.