IN­DUS­TRY FEED­BACK On DE­LAYED GST

Perfect Sourcing - - Burning Issue -

Ap­parel is a labour-in­ten­sive sec­tor and the on­go­ing is­sues are weak­en­ing it. While the re­funds from the Cen­tre are pend­ing, the in­dus­try con­tin­ues to make the manda­tory pay­ments every month. This is crip­pling the in­dus­try. raja Shan­mugham, pres­i­dent, tirupur ex­porters’ as­so­ci­a­tion.

The sit­u­a­tion is re­ally bad as we have been wait­ing for the re­funds for a long time. This has cre­ated a huge prob­lem for all fel­low ex­porters as cash flow is not avail­able and is re­strict­ing our buy­ing and man­u­fac­tur­ing strengths. ashok ra­jani, MD, Midas touch ap­par­els, Mum­bai

“The in­ter­na­tional mar­ket is not bad. There is an in­ter­nal com­pet­i­tive­ness prob­lem for drop in ex­ports of not only gar­ments but also other tex­tile prod­ucts. San­jay K. Jain, chair­man, con­fed­er­a­tion of in­dian tex­tile in­dus­try

The gov­ern­ment has to do some­thing about it and get it cleared as soon as pos­si­ble. See there are two routes IGST and other is RD 501, while RD 501 Is lengthy and te­dious, IGST should be so au­to­matic and sim­ple that it gets cleared swiftly. There is no sta­tus on the re­funds ex­porters do not even know whether it has been re­jected or ap­proved at least the sta­tus of the re­quest should be up­dated so that peo­ple know that the ap­proval is done and it is in process. We have started get­ting some re­funds and fi­nally there is slight move­ment. How­ever, there will be a lot of prob­lems if it will not come soon. naren­dra Goenka, MD, tex­port in­dus­tries pvt Ltd

The sit­u­a­tion is re­ally bad as we have been wait­ing for the funds to be re­leased for a long time but it has not hap­pened so far. The busi­ness if af­fected due to slow de­mand and above this if re­turns will be de­layed so much how will we op­er­ate? an­imesh Sax­ena, nee­tee cloth­ing, Gur­gaon

We are suf­fer­ing on every front, cash flows have be­come su­per tight, bank bor­row­ings are go­ing high, in­ter­est com­po­nents have gone up and prof­itabil­ity has gone down. We have de­cided to put on hold all ex­pan­sions that means no fur­ther gen­er­a­tion of em­ploy­ment. Saad Sal­man, in­dian De­signs, Ban­ga­lore

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