India Updates Goods and Services Tax Rates to Promote Exports
India updated goods and services tax rates on a range of items and introduced policies to promote exports, according to a notice from India’s Central Board of Indirect Taxes and Customs.
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The changes, which took effect Oct. 1, include lowered goods and services taxes on slide fasteners, marine fuel, “wet grinders,” dried tamarind, certain plates, cups, stones and “specified goods for petroleum operations,” India said. India also exempted tariffs on imports of defense goods “not being manufactured indigenously” and goods to the Food and Agriculture Organization for projects in India. India will increase taxes on certain railway wagons, coaches and caffeinated drinks, among others.
India also issued a clarification on the GST changes and code classifications on “leguminous vegetables,” mechanical sprayers, solar-powered devices, medical device parts and more.
The country is exempting GST on exports “when both the supplier and recipient are located outside the taxable territory,” India said in a separate notice. India is also increasing the “validity of conditional exemption of GST on export freight by air or sea” until Sept. 30, 2020.