EEPC India has urged the government to streamline GST refunds and secure better trade terms for engineering exports, citing persistent challenges despite GST 2.0 reforms. The recommendations came during the fourth meeting of the reconstituted Board of Trade (BoT).
While lauding the simplified tax structure for promoting growth, EEPC India highlighted cases of inverted duty structures in the engineering sector. For example, steel attracts 18 per cent GST while finished bicycles are taxed at 5 per cent, delaying input tax credit claims. “A fully automated refund system, releasing 90 per cent upfront, will allow exporters to pass benefits to consumers,” the body suggested.
On trade, EEPC India flagged the 50 per cent US tariff under Section 232, urging inclusion of steel, aluminium, and auto parts in bilateral trade agreement negotiations. “Favourable tariffs are crucial for MSME survival,” the council said. For the EU, it recommended maintaining current steel quotas and integrating steel into ongoing FTA discussions. The EU’s carbon pricing on steel and aluminium was also flagged, adding cost pressures on energy-intensive exports.
Payment delays from Russia, due to sanctions and banking hesitancy, were highlighted as another concern, with EEPC India proposing a direct rupee–ruble exchange mechanism for smoother transactions.
With these measures, EEPC India aims to safeguard domestic industry while enhancing competitiveness in traditional markets like the US, EU, and Russia.