Banarasi Saree and carpet Industry in a dilemma due to issues with GST procedures. Specifically, the constituency of the PM Narendra Modi, Varanasi and nearby areas are facing problems in continuing the business. The situation is very serious as Banarasi Saree to Carpet Industry to Handicraft Sector and all related businesses are about to set out and the reason is the Goods and Service Tax.
According to exporters, there are so many problems with GST portal and around Rs. 300 Crore claims are intertwined on a hold. Due to this, traders are facing liquidity shortage issues.
As per the northern exporters, around Rs. 300 Crore worth working capital is stuck with GST network. The Carpet City, Bhadohi, generally exports around Rs. 4000 Crore worth carpets. Banarasi Saree and Handicraft industry collect around Rs. 300 Crore accumulated corpus as a part of exports.
Traders mentioned that from GST implementation to till date, Carpet exports Market paid off 12% GST and other industries conferred 5% GST in five months. Every trader had expected to get a refund under Input Tax Credit in around 2-3 months but it did not happen in that duration and traders are left with hopes only.
As per Ravi Pataudi, All India Carpet Manufacturers Association member, due to GST portal related issues, Rs. 200 Crore capital of around 1000 Bhadohi exporters has stranded in between. As the working capital of exporters is stuck, it is directly affecting the raw material purchase, Wages of artisans, and weaving of the carpets.
Ashok Gupta, convenor of PHD Chamber of Commerce said that the central government has implemented GST with extempore and did not create an organized system, and due to this exporters are facing many problems.
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Sudhir Agarwal, one of the carpet exporters said that GST portal is not accepting refund forms and even not linking shipping bills with GST portal which is creating further problems. As there is no connection between shipping bills with GST portal, exporters have no proof of goods sent offshore and exporters are not able to claim refunds under GST as well.
