Bengaluru, Jun 23 (PTI) The incentive schemes designed for promotion of exports will continue even after the GST roll out from July 1, while the government may do away with the deemed export benefits, a top official said today.

Deemed exports refer to the transactions in which the goods supplied do not leave the country and the payment for such supplies is received either in Indian currency or in free foreign exchange.

The government is committed to continue incentive schemes for export promotion, Commerce Secretary Rita Teaotia said while addressing exporters at an event here.

However, she clarified that deemed export benefits may discontinue, as all will get level playing field in the Goods and Services Tax regime, FIEO said in a statement.

While replying to the concerns of exporters due to regular beak down in icegate server of customs, she said the department is in the process of upgrading the system so that all the issues of the exporters and importers will be solved.

Open house session was organised by the Federation of Indian Exports Organisation (FIEO) to invite suggestions from exporters on the measures needed in foreign trade policy.

Exporters presented in the programme from various sectors, including engineering, textiles, pharma, defence and silk, argued for continuation of all schemes to make Indian products competitive as well as the need for exemption route instead of paying tax and then claiming refund.

Dr A Sakthivel, Regional Chairman, FIEO (Southern Region) said that paying GST and take refund will block working capital of exporters, which is costly compared to our competing countries.

He also highlighted various anomalies like non-inclusion of garments manufacturers in the 5 per cent GST announced for textiles industry.

Export incentives to continue post GST; deemed export benefits may end, raising concerns over refunds and working capital. Incentive schemes to promote exports will continue after GST, while deemed export benefits may be discontinued because GST aims to create a level playing field. Exporters warned that paying GST and later claiming refunds would block working capital and advocated exemption routes or safeguards. Sectoral anomalies in GST rates and customs IT upgrades were also raised during trade consultations.