Recent Apparel Export Promotion Council approached the Finance Minister and Textiles Minister regarding the issues of GST refunds and Rebate on State Levies (RoSL).
In the past, textile and apparel exports got a major hit apparently due to the goods and services tax and this has caused a major tension in the industry. The Apparel Export Promotion Council made a statement after the meeting with the ministers, and also the concerned ministers had a deep understanding of the issues replying back with some support for the problems.
Apparel Export Promotion Council in the statement told that “Finance minister has instructed his team to urgently identify central and state embedded taxes and work out a reimbursement mechanism. Also, Ministry will expedite GST and RoSL refunds in a time-bound manner.”
The council also said that the minister extended the help for the job sector and mentioned that the accurate details and help will be given as soon as possible.
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Chairman, AEPC, mentioned in the statement, “Industry apprised finance minister about the crisis faced across the industry – in embedded and inverted taxes not being considered for a refund as well as the huge delays in receiving GST/ROSL claims. Since over 90 percent of apparel manufacturers are in the MSME sector with limited financial capability, this has created crippling pressure.”
The council clearly stated the losses which the apparel and textile industry is going through as the refund claims are getting worse and have made a roadblock for the industry-wide segments.
(Freight on Board) FoB benefits are down by 5 percent in comparison with the pre GST era hence it is now to time to concern over the matter and finds out the solution soon.
