Government plans scheme to replace MEIS
The Government plans to do away with Merchandise Export from India Scheme (MEIS) – that subsidizes exports – which has been challenged by US in the World Trade Organization (WTO). It will be replaced by a new scheme which bolsters the Make in India drive of the government & will also be of use to the exporters in the absence of an export subsidy scheme.
“The new scheme will be on the nature of refund of all un-rebated central and state taxes and levies scheme on inputs consumed in exports in all sectors,” stated an official from Ministry of Commerce & Industry. Un-rebated taxes include state value added tax/central excise duty on fuel used in transportation, captive power and farm sector, mandi tax, duty on electricity, stamp duty on export documents, purchases from unregistered dealers, embedded central goods and services tax (CGST) and compensation cess and coal used in production of electricity.