Trade, import and export for MSMEs: Industry physique for MSMEs Federation of Indian Micro and Small & Medium Enterprises (FISME) on Thursday prompt a devoted coverage framework for selling e-commerce exports within the upcoming Foreign Trade Policy (FTP). The suggestion was a part of the inputs shared by FISME to the federal government to assist MSMEs promoting items on-line. The present FTP 2015-20 needed to lapse on March 31 this yr however was prolonged additional until September 30. The authorities had earlier prolonged the coverage in March 2020 amid the Covid unfold.
“A large number of e-commerce sellers are micro units. However, for such enterprises, many of which operate from homes and without proper office, GST registration is mandatory to sell goods online while those operating offline with up to Rs 40 lakh annual turnover are exempted from GST. So, the new FTP should exempt e-commerce sellers as well to promote more businesses to go online before they start selling abroad,” Prashant Patel, President, FISME advised Financial Express Online.
FISME additionally prompt a number of brief to mid-term measures to deal with operational inefficiencies confronted by MSMEs when exporting by means of the e-commerce channel. “This includes measures like simplifying returns in e-commerce exports, digitising the process of AD code registration (a 14-digit code provided by the bank and required at the port from where customs clear goods), automating the processes related to eBRC (electronic Bank Realisation Certificate for exporters by the bank as payment confirmation from the buyer for goods exported) and eFIRC (electronic Foreign Inward Remittance Certificate that acts as a proof of inward remittance to India) procurement and consolidation,” the physique mentioned.
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“GST refund for export items is applicable on invoices above Rs 25,000 but in e-commerce, the goods sold are largely around Rs 10,000 or less, MSMEs still have to pay 18 per cent GST. This 18 per cent is a very big amount for small businesses. Also, MSMEs have to pay import duty on e-commerce returns from foreign country. So, we have asked the government to make a separate policy for e-commerce exports in the upcoming FTP,” added Patel.
Other ideas made by FISME had been making a single window clearance for e-commerce exports by leveraging current programs in place like Indian Customs Electronic Gateway (ICEGATE) and so on., and likewise benefitting from current schemes and our bodies like ‘Niryat Bandhu’ and ‘Export Promotion Councils’ to create extra consciousness about e-commerce exports amongst MSMEs. ICEGATE is the portal of Indian Customs of Central Board of Indirect Taxes and Customs (CBIC) that provides e-filing providers to commerce, cargo carriers and different buying and selling companions electronically.
Source: www.financialexpress.com”