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New Delhi: The Central Board of Indirect Taxes and Customs (CBIC) on Friday extended more tax incentives for exports made through the courier mode in order to boost shipments from micro, small and medium enterprises (MSMEs), an official statement from the finance ministry said.<\/p>\n<\/div>\n
The new amendment provides a level playing field for growth of exports through the courier mode and seeks to enhance the competitiveness for exporters in the MSME segment, the statement said, adding that the move will strengthen India\u2019s position in global e-commerce.<\/p>\n<\/div>\n
The CBIC has extended export-related benefits under three schemes for exports through the courier mode with effect from 12 September, the statement said. These schemes are the duty drawback scheme, which provides for refund of duties paid on import of raw materials used in exported products; Remission of Duties and Taxes on Exported Products (RoDTEP), a scheme for refunding certain duties and taxes that are not refunded under any other mechanism; and the Rebate of State and Central Taxes and Levies (RoSCTL) scheme meant for boosting export of garments.<\/p>\n<\/div>\n
Also read | India plans to build 50 e-commerce export hubs<\/strong><\/p>\n<\/div>\n The changes have been made by amending the Courier Imports and Exports (Electronic Declaration and Processing) Regulations, 2010.<\/p>\n<\/div>\n The changes allow businesses to utilize courier services for imports and exports related to these schemes, offering greater flexibility and efficiency in their supply chains, said Saurabh Agarwal, a tax partner at EY.<\/p>\n<\/div>\n \u201cPreviously, courier services were limited to the export-oriented unit scheme. The updated regulations include revised procedures to accommodate these additional export promotion schemes,\u201d Agarwal added.<\/p>\n<\/div>\n Over the recent years, the central government has streamlined India\u2019s e-commerce export ecosystem, the statement said. A dedicated chapter in the foreign trade policy of 2023 provides a framework for cross-border trade in goods and services in the digital economy and for promotion of e-commerce using courier, post, e-commerce export hubs,\u00a0Dak Niryat Kendras, etc., the statement said.<\/p>\n<\/div>\n E-commerce business in India has seen exponential growth over the last decade and is expecting to witness a steep increase in revenue in the coming years, the statement said. Iin FY23, the total value of courier exports stood at \u20b9<\/span>7,995 crore with e-commerce exports accounting for \u20b9<\/span>3,510 crore. The figures are expected to further increase significantly given the global trends and impetus provided to the e-commerce industry through various government initiatives, the statement said, adding that India\u2019s e-commerce exports are likely to rise to $400 billion by 2030.<\/p>\n<\/div>\n