TEA urges Centre to extend exemption on IGST payment
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.