CST, ST sops on the cards for EOUs

NEW DELHI: The government-in-waiting will have some good news for the exporting community. EOUs would be given more concessions in the Exim Policy, going by the proposals firmed up by the commerce department for the consideration of the new commerce minister.
Mainly, the commerce department wants to give central sales tax (CST) and service tax (ST) exemptions that are currently available for supplies from the domestic tariff area to Special Economic Zones (SEZ) units to supplies from DTA to EOUs also.
Currently, DTA supplies to the EOUs do not enjoy CST and ST exemption. The EoUs, however, are entitled to get full reimbursement of the CST and ST.
Officials reckon that some EOUs have been facing working capital constraints owing to the delay in reimbursement process, while their contribution to the country’s exports has been quite significant. “We are getting the revenue department’s consent for extending the exemption from CST and ST to EOUs. If we face any problem on this, we would like the EoUs to be paid 6% interest on repayment,� sources from the commerce department said. Such a facility is currently available with the duty drawback scheme, they pointed out.
The community of the 100% EOUs have been grumbling for long for their being denied a treatment at par with that given to the SEZs.