TEA urges Cen­tre to ex­tend ex­emp­tion on IGST pay­ment

Apparel Online - - Industry Live -

Tirupur Ex­porters’ As­so­ci­a­tion (TEA) has re­quested the

Cen­tral Gov­ern­ment to ex­tend ex­emp­tion from the pay­ment of IGST (In­te­grated Goods and Ser­vice Tax) while im­port­ing machin­ery un­der EPCG scheme, which is cur­rently valid till the end of this month. Raja M Shan­mugham, Pres­i­dent, TEA marked out that if the ex­emp­tion is not ex­tended, ex­port­ing units will come un­der the ad­di­tional bur­den of pay­ing IGST. “Up­front pay­ment of IGST will af­fect the work­ing cap­i­tal of the ex­port­ing units as the re­funds of GST through ITC re­fund route will take time to reach the hands of the ex­porter,” the Pres­i­dent added. The tex­tile and ap­parel body elu­ci­dated that since over 80 per cent of the ex­port­ing units are MSMEs (Mi­cro Small and Medium En­ter­prises), it is dif­fi­cult for them to meet their fi­nan­cial re­quire­ments, which even­tu­ally af­fects their day-to­day op­er­a­tions. Raja added that con­stant mod­erni­sa­tion is the need of the hour for the ap­parel ex­port­ing units, as nowa­days the buy­ers are de­mand­ing con­sis­tent qual­ity and in­stal­la­tion of sta­teof-the-art machin­ery. No­tably, TEA’s Pres­i­dent said that he has sent let­ters to the Cen­tral Gov­ern­ment urg­ing it to ex­tend the IGST pay­ment ex­emp­tion on an ur­gent ba­sis.

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