Industry body FICCI has recommended that the next government should amend the Foreign Trade Policy 2015-20 and Customs Law to allow the utilization of MEIS & SEIS scrips towards the payment of GST on imports.

Currently, Merchandise Export from India Scheme (MEIS) and Service Export from India Scheme (SEIS) scrips cannot be utilized for payment of IGST & GST compensation cess on imports. The non-availability of utilizing the scrips towards the payment of IGST, has led to financial burden on the importers, added FICCI

A FICCI delegation led by Rajan Bharti Mittal, Past President, FICCI met Ajay Bhushan Pandey, Secretary (Revenue), Ministry of Finance in the pre-budget discussion meeting held at North Block today.

The key recommendation was that the focus of the Government should be to spur domestic investment and in order to retain India’s competitiveness globally, corporate tax rate cut should be considered.

It was stressed that with phasing out of exemptions and deductions available under the Income Tax Act, 1961 ('the Act') and to avoid complexities arising under Ind-AS, there is a need to review the concept of Minimum Alternate Tax (MAT).

A recommendation has been made to abolish MAT and extend a simpler Alternate Minimum Tax as is currently applicable to non-corporates to corporates, but at a reduced rate of 10% considering the reduction in corporate tax rate to 25% in line with global trend.

The need to restore weighted deduction under section 35(2AB) of the Act for expenditure incurred on scientific research being critical for Indian businesses was clearly stressed upon.

Recommendations for amendments required in the Act to facilitate smooth re-organisation across the economy were also made.