Home / General / Tirupur Exporters Association Hails Relief Package to Export Sector

Tirupur Exporters Association Hails Relief Package to Export Sector

Tirupur:

Port Wings News Network:

Tirupur Exporters Association (TEA), an influential body of exporters from Tamil Nadu, has welcomed the relief package announced for the export sector by the GST Council few days ago.

In a media statement issued on 9 October, Mr Raja M Shanmugham, President, TEA, said that the exporters welcome the relief package announced for the export sector by the GST Council after considering the requisitions made by the Association.

Mr Shanmugham further said the Drawback committee met today (9 October 2017) would also consider the requisition of the Association for increasing the Duty Drawback rate after including embedded taxes like transportation of raw materials and input, usage of petro products, for generation of electricity etc., which were not taken into account earlier mainly to enhance the competitiveness and also to protect SME exporters.

In a thanking letter sent to the Finance Minister Mr Arun Jaitely, the association stated: “We would like to thank the Minister for conceding the requisitions of our Association to address the GST implications and other export related issues in the GST council meeting held on 6th October 2017 and as a result of this, the industry will move ahead, take efforts for increasing exports and reverse the declining trend.”

The association also listed out positive measures after the announcement in the letter.

The reduction of GST rate for Man-Made Fibre yarn from 18% to 12% and this will help the garment sector in a long way to increase the volume of synthetic garment exports, which is order of the day.

Besides, holders of AA / EPCG and EOUs would not have to pay IGST, Cess etc. on imports which helps to address the working capital blockage issue.

Also, domestic supplies to holders of AA / EPCG and EOUs would be treated as deemed exports under Section 147 of CGST/SGST Act and refund of tax paid on such supplies given to the supplier.

The permanent solution to cash blockage is that of “e-Wallet” which would be credited with a notional amount as if it is an advance refund. This credit would be used to pay IGST, GST etc. The details of this facility would be worked out soon. The Council desired that the “e-Wallet” solution should be made operational w.e.f. 1st April 2018.

Exporters have been exempted from furnishing Bond and Bank Guarantee when they clear goods for export. To restore the lost incentive on sale of duty credit scrips, the GST on sale-purchase of these scrips is being reduced from 5% to 0%.

“We have requested for higher rate of Duty Drawback rate after including the embedded taxes like transportation of raw materials and input, usage of petro products, for generation of electricity etc., which were not taken into account earlier mainly to enhance the competitiveness and also to protect SME exporters. As the exporters have to commit the future orders only based on the availability of duty drawback and other measurers, an immediate announcement of increase in Duty Drawback would be much helpful to restore the confidence of exporters and reinvigorate the growth trajectory,” the letter said.

Mr Raja M Shanmugham said he has sent thanks letters to Mr Arun Jaitley, Union Minister for Finance, Smt. Smriti Zubin Irani, Minister of Textiles, Mr Suresh Prabhu, Union Minister of Commerce & Industry PMO Office, Dr. Hasmukh Adhia, Secretary – Revenue, Ministry of Finance, Mr Anant Kumar Singh IAS., Secretary, Ministry of Textiles, Ms.Rita A Teaotia I.A.S., Secretary, Department of Commerce, CA. Upender Gupta, IRS, Additional Commissioner , GST Cell, CBEC and Mr Yogendra Garg, Commissioner of Central Excise, Working Group – Textiles.

About Editor News

Check Also

Students From Over 70 Countries Graduate From World Maritime University

Chennai: Port Wings News Network: The maritime leaders of tomorrow from over 70 countries graduated …

Leave a Reply