Welcoming the decision of the GST Council of reducing the rate on supply of various scrips from 12 per cent to 5 per cent, the Federation of Indian Export Organizations (FIEO) said the move will give a boost to the exports sector.

"Reduction of the GST rate on supply of scrips like merchandise exports from India scheme (MEIS), service exports from India scheme (SEIS), duty free import authorisation (DFIA) from 12 per cent to 5 per cent follows the fitment formula adopted by the Council," FIEO president Ganesh Kumar Gupta said in a statement issued here on Sunday.

He said the decision will give a boost to premium on scrips which plummeted with restriction on utilisation of scrips in the GST regime.

"Wider utilisation of scrips will also be looked by the new Committee as the government's objective is to benefit the exporters through the grant of scrips rather than the importers," Gupta said.