New Delhi, Nov 15 (PTI) Apparel exporters today demandedthat the duty reimbursement to garment exporters be retainedat pre-GST drawback rate of 7.5 per cent as an immediaterelief to them amid declining outbound shipments.
India's apparel exports declined 39 per cent in valueterms in October.
Under drawback, exporters get the reimbursement of dutiesthey have paid on the imported items used in the finishedgood.
In the wake of dwindling apparel exports, AEPC in astatement said that it has been engaging with the policymakers for an early resolution of the issue which is hamperingthe apparel industry, post GST roll out.
Chairman of Apparel Exports Promotion Council (AEPC)Ashok Rajani today called on Chief Economic Advisor ArvindSubramanian to apprise him about the difficulties faced bygarment exporters.
The apparel export industry has been "severelyhandicapped" by the sharp reductions in the effective drawbackand rebate on state levies (RoSL) rates. The drawbackmechanism prior to the GST reimbursed both the customs dutiesand domestic taxes like central excise and service tax.
"The important point is the principle of reimbursement ofdomestic non-GST and GST central taxes in addition to customsthrough the drawback mechanism," he said.
This, however requires an amendment in the drawback rulesto provide for reimbursement of GST duties.
"We therefore urged Subramanian that pending theselegislative changes, the total duty reimbursements to theapparel sector be retained at pre-GST stage of 7.5 per centdrawback without input tax credits, plus 3.5 per cent of RoSL(rebate on state levies)," Rajani said.
The pre-existing levels of reimbursement through thedrawback and the RoSL routes should be maintained upto 31March, 2018 to provide immediate relief to the reeling apparelsector, he added.
AEPC is the official body of apparel exporters in Indiathat provides invaluable assistance to Indian exporters aswell as importers/ international buyers who choose India astheir preferred sourcing destination for garments. PTI RSN NKDMR.
This is unedited, unformatted feed from the Press Trust of India wire.