AEPC urges Government to address issue of embedded taxes -refund through the drawback route ahead of peak festival season

New Delhi, Oct 6 (KNN) In an attempt to voice concern of the textile sector comprising of a fair share of the Micro, Small and Medium Enterprises (MSMEs), Apparel Export Promotion Council (AEPC) have urged the government to address the refund of embedded taxes on exports under the Goods and Services Tax (GST).

AEPC in a press statement informed that it has written to the GST council regarding the embedded taxes including the levies on cotton, electricity, input tax credit restrictions for man-made fibers used in textiles and purchases made from unregistered dealers.

AEPC further informed that at global level, countries in regions including Middle East, South Asian and African countries have emerged as a significant market for Indian readymade garments and since lot of orders were already booked before the introduction of GST, the curtailment in duty drawback will adversely affect the exports.

It has also requested for the reinstatement of the scope of transaction for MEIS scrip to facilitate the exporters to make payments of necessary duties and taxes through the scrip transactions that existed in the previous tax regime.

Also the industry body has written to the Commerce and Textile ministries along with Niti Aayog on the issue of restoration of Old duty drawback rates. The council has made a presentation to Mr. Amitabh Kant, CEO, Niti Aayog apprising him about the various issues of the garments sector.

AEPC is an official apparel exporters  bodyin India that provides assistance to Indian exporters as well as importers/ international buyers who choose India as their preferred sourcing destination for garments. (KNN/DA)