Apparel exporters flag post-GST issues before Par panel
New Delhi, Oct 28 (PTI) Apparel exporters have brought upthe problems faced by them post GST before a parliamentarypanel, signalling the "strong likelihood" of a decline ingarment shipments from India and possibility of job losses.
The Apparel Export Promotion Council (AEPC) made apresentation to the Parliamentary Standing Committee (RajyaSabha) on Commerce chaired by Naresh Gujral earlier this week.
The body pressed for early consideration of tax refundsblocked on the purchase of ginned cotton (agricultural inputssuch as agricultural machinery, seeds, fertilisers, power,diesel and the like) and miscellaneous central or state levieslike power cross subsidy, stamp duty, property tax and otherlevies for refund under Rebate of State Levies.
The council also drew the attention of the committeemembers to the issue of extension of exemption of IGST onimport under EPCG (Export Promotion Capital Goods) or AdvanceAuthorisation from March 31, 2018 to December 31, 2018, inorder to provide a longer window for investment decisions.
It also asked for allowing utilisation of MEIS(Merchandise Exports from India Scheme) scrips for use inpayment of CGST, SGST and IGST to ease the challenges ofworking capital blockage and other procedural issues.
To arrest the decline in exports, the AEPC suggested thatthe competitive exchange rate and rupee appreciation bestabilised to protect the interest of exporters.
"The positive impact of GST is yet to be felt by garmentindustry where input costs have not come down. Overall effectof GST on apparel exporters, especially small and mediumexporters, is burdensome and stressful due to substantialincrease of working capital and higher transaction cost," AEPCChairman Ashok Rajani said. "It has not only impacted theproduction of apparel adversely, but has also led to pressureon margins for exporters due to lowering of drawback rates."The council, according to him, has informed theparliamentary panel that under the prevailing circumstances,there is a strong likelihood of exports from India dipping inthe near future, as the global garment industry is verycompetitive.
"Further, competing countries like Bangladesh and Vietnamhave cost advantages on account of preferential tradeagreements with major export markets, and buyers are moving tothese destinations for sourcing. This could have a cascadingeffect on the job scenario as exporters will be forced to shedjobs," Rajani added. PTI RSN ARDABM.
This is unedited, unformatted feed from the Press Trust of India wire.