Indian exporters are urging the government to remove the cap on interest subvention, saying the current support is too low to withstand rising global trade uncertainty. The Federation of Indian Export Organisations wants the scheme revised to offer stronger relief, particularly for firms hit by higher borrowing costs and unstable export demand.
Experts say the government can better support exporters by resolving gaps and ambiguities in GST rules. A key concern is whether exporters must pay GST under the reverse charge mechanism for bank charges deducted by an overseas bank when importers remit sales proceeds. Clear guidance is urged to avoid unexpected tax liabilities and compliance confusion.
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