Apparel exports continue to feel heat as GST complications continue: AEPC

New Delhi, Dec 29 (KNN) With over six months into the Goods and Services Tax (GST) in the country, the apparel sector comprising of a fair share of Micro, Small and Medium Enterprises (MSMEs) continue to suffer poor exports, Apparel Export Promotion Council (AEPC) informed.

Also the data from November suggested that the exports of ready-made garments from the country experienced a 10 per cent dip as compared to the data from the corresponding period of the previous fiscal.

The sector has been demanding time and again to restore the duty drawback rate that existed for the sector in the pre-GST times.

Earlier, talking to KNN over the concerns, Animesh Saxena, an MSME exporter informed that the sector have been in bad waters ever since the new taxation was rolled out.

GST in India comes at a time when the industry is already facing a slowed global demand.  Also the free trade agreements are another hurdle that is causing the Indian apparel sector to face problems.

Also with regard to the RoSL that was revised by the government earlier, Saxena informed that with the new announcement in place, the rate touches to 1.7 per cent whereas earlier it used to be around 3.7 per cent.

Saxena further said that even if one was to look at the two recent initiatives taken by the government towards the sector, MEIS and RoSL, there still exist a margin of over 4-5 per cent as compared to the pre-GST times.

Along similar lines of slow trade, Gagandeep Singh, Company Secretary of Denim Manufactures Association informed that ever since the roll out of the new tax, the denim industry have seen a decline by over 30 per cent to 40 per cent in business. (KNN/ DA)