Q-and-A

It’s more than 20 days since the im­ple­men­ta­tion of GST in In­dia. The Gov­ern­ment is do­ing its best to cre­ate aware­ness about all the as­pects of GST. Most from the ap­par­els and tex­tiles in­dus­try had ear­lier stated that things will be­come clearer with its im

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Prabhu Dhamod­ha­ran, Con­venor, In­dian Tex­preneurs Fed­er­a­tion (ITF), Coimbatore

I can say that the move­ment started off well. Be­ing in the low­est slab, cot­ton tex­tiles is quickly com­ing back to nor­mal, and we can see brisk sale in many prod­ucts at yarns and fab­rics stage. As fes­ti­val season is com­ing, we are ex­pect­ing good sales mo­men­tum in the com­ing days. As far as MMF prod­ucts are con­cerned, polyester cot­ton yarns and vis­cose yarns sales have started but pain is there in the prices due to higher GST rates and also be­cause of some gap in in­put credit value at weav­ing stage.

The value chain is wait­ing for the date 5th Au­gust when GST Coun­cil meet­ing will take place and we are ex­pect­ing a small change in rates for MMF yarns, from 18 to 12 per cent. We (our mem­ber mills) are very clear now on the GST part and the billing is going smooth, cre­at­ing a sys­tem for all in­puts credit with­out any wastage. As far as less lo­gis­tic time is con­cerned, we can’t say strongly on this as there is no cot­ton season as of now. So, bulk trans­porta­tion is not hap­pen­ing in our mem­bers’ mills.

Lalit Thukral, Pres­i­dent, Noida Ap­parel Ex­port Clus­ter (NAEC), Noida

This is a tran­si­tion pe­riod and even the next two months will be the same. Though ex­porters will get back what­ever taxes they have paid, we are still fac­ing some prob­lems. Com­mu­ni­ca­tion gap is there as we heard that ship­ments are be­ing cleared at Delhi air­port with Let­ter of Un­der­tak­ing (LUT) but not at Dadri (Con­tainer De­pot). We are run­ning from pil­lar-to-post to get clar­ity on such things.

De­spite these chal­lenges, we are pos­i­tive about GST as all these things will be­come clearer after the tran­sit pe­riod. But the ma­jor con­cern is 18 per cent rate on job­work­ers. Many small and medium level ex­porters told me that they are fac­ing prob­lems due to this. Some small but im­por­tant job­work­ers are plan­ning to leave this busi­ness rather than going for GST reg­is­tra­tion and pay­ing 18 per cent GST. So, this is a ma­jor con­cern now. I would urge the Gov­ern­ment to sup­port and clear things for at least the next 3 months rather than cross check­ing and cre­at­ing fear fac­tor. There are many ex­porters who are not much friendly with the rules and reg­u­la­tions, or not hav­ing enough sup­port staff to man­age such things. Hence, Gov­ern­ment’s sup­port­ive na­ture is re­quired to help them over­come the dif­fi­cul­ties.

Sud­hir Sekhri, Chair­man & Manag­ing Di­rec­tor, Trend Set­ters In­ter­na­tional, Delhi

It is very early to say some­thing con­crete on GST ben­e­fits so far. Things will be re­ally clear by 30th Septem­ber, 2017 or so, when new sys­tem/rates re­gard­ing ROSL and duty draw­back will be an­nounced and we will com­pare the things. But cur­rently, the is­sue is to man­age the work­ing cap­i­tal as for ev­ery­thing, we are pay­ing GST and un­til it is not re­ceived back, money will re­main blocked.

For most of the medium-level ex­porters, work­ing cap­i­tal man­age­ment was al­ready a big chal­lenge. There­fore, there are some grey ar­eas in GST or al­lied poli­cies and even fi­nan­cial experts are not clear about them. These doubts will be cleared slowly in the com­ing months as it hap­pens with ev­ery other big ini­tia­tive. At an op­er­a­tional level, there are no is­sues. We don’t see less trans­porta­tion time as a ma­jor ben­e­fit as due to sys­tem­atic plan­ning, we don’t face much is­sues in this area.

In the last 20 days, Su­rat was on strike which cre­ated some prob­lems for fab­ric avail­abil­ity but now it is com­ing back to nor­malcy.

Su­man Khaneja, Di­rec­tor, Saloma Fash­ion Hub, Delhi

I would like to com­ment on it from two dif­fer­ent per­spec­tives. As a gar­ment ex­porter, I must say that at present, there is some prob­lem on fab­ric de­liv­er­ies due to the re­cent strike in Su­rat. Though news is com­ing that

Su­rat has started work­ing, it will take some time to get back to what it was ear­lier. Se­condly, polyester fab­rics are going to be costlier now, so I don’t have any clue about how to an­swer the buy­ers on this. So far, we have not ex­pe­ri­enced this prob­lem as there are no new or­ders but very soon, we have to jus­tify. Even, GST is be­ing pub­li­cized as ‘One na­tion-one tax’, then why SGST and CGST are be­ing charged? Is it not that we are pay­ing two taxes?

My se­cond per­spec­tive would be from the an­gle of a com­mon citizen. Why is there GST on things which are for use by the phys­i­cally hand­i­capped? There

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