The Apparel Export Promotion Council (AEPC) wants the Rebate of State Levies scheme to be continued post GST and inclusion of other state levies not subsumed in GST. The council has also requested for a drawback for central taxes outside the GST purview besides full accumulated input GST tax credit.

AEPC is the apex body of apparel exporters. It raised the issue of embedded blocked taxes which the industry is facing in central taxes. It has drawn attention to the new levies like intra company stock transfers, GST on job work, etc. which have been imposed in the GST regime but which have not been factored in the earlier announced drawback rates. It is felt these new levies will lead to a cost escalation especially in the transitionary phase.

The garment industry welcomes GST as a move to unify the national economy but not at the cost of growth of the apparel sector. AEPC feels GST has diluted most FTP benefits that the industry was availing so far besides putting a huge pressure on working capital. It wants all taxes - direct and indirect—to be reimbursed under the drawback and ROSL benefits. AEPC also wants an exemption for samples sent to buying agents within India or abroad from GST.