New Delhi, Sept 28 (KNN) Responding to the panic situation due to the blockage of capital as well as the revision of duty drawback rates under the Goods and Services Tax (GST) regime, the Micro, Small and Medium Enterprises (MSMEs) involved in textile export called upon the NITI Aayog raising concerns, Apparel Export Promotion Council (AEPC) informed.

Talking to KNN, H K L Magu, Vice Chairman and Regional In charge of AEPC said that the textile sector comprises of over 80 per cent of the MSMEs and these units are suffering huge crisis under the new taxation.

Explaining the mechanism, Magu said that for a normal textile export MSME, the production cycle stretches for over 90-100 days followed by a months’ time for shipment.

“For a small enterprise doing business of 1 crore – 10 crore, after the cycle is completed, the enterprise is supposed to ask for the rebate of over 60 lakh rupees that gets stocked up at the tax office, delay of which is a genuine problem that the sector Is facing at present,” he said

While for a large enterprise, it is easy to move ahead even if a portion of their capital is blocked, but for a small and medium enterprise it is difficult to absorb the delay shock as these small units don’t even possess enough resources to apply for credit.

Also the duty drawback rate revision has posed another big problem for the sector that is yet to stabilize under the One Nation One tax regime.

AEPC recently met Amitabh Kant of NITI Aayog citing the concerns of the sector, responding to which he assured that the concerns will be raised at every possible level. (KNN/ DA)