Feedback Here

fbook  tweeter  linkin YouTube
Global contents also translated in Chinese

GST continues to dog MSMEs, says AEPC

As per Ashok Rajani, Chairman, Apparel Export Promotion Council (AEPC) the positive impact of GST is yet to be felt by the garment industry as input costs have fallen. Sharing concerns of the textile industry comprising largely of micro, small and medium enterprises (MSMEs) an AEPC delegation met the Parliamentary Standing Committee to discuss the implications and impact of GST on apparel exports. The exporters’ body was unhappy that the sector, especially the MSMEs, does not have necessary resources to ensure GST compliance.

Commenting on the impact of GST on MSMEs, Rajani said due to a significant increase in working capital and higher transaction cost MSMEs have to hire services of CAs to effectively manage GST payments/refunds which is an added burden on the sector. Due to these issues exports are likely to fall drastically in coming months.

Further the sector is already facing tough times due to competition from rival counties and the complications of GST is further harming the industry. The Council through its presentation also drew attention on the issue of extension of exemption of IGST on import under EPCG or Advance Authorisation from 31st March, 2018 to December, 2018 to provide a longer window for investment decisions and enhancement of MEIS to 5 per cent for reimbursing increase in cost of working capital and higher transaction cost.

 
LATEST TOP NEWS
 


 
MOST POPULAR NEWS
VF Logo