Introduction of GST is likely to benefit the foreign trade. Destination based taxation is a fundamental principal of sound GST. Importers would be taxed at the same rate as products produced and consumed with the jurisdiction. Exporters of goods and services shall continue to be zero rated and will be eligible to claim refund of input tax credit. Hence, both Import substituting industries and Export oriented industries would become internationally more competitive. These will give an impetus to export whereas imports will be expected to register a downfall.
