New Delhi, Mar 12 (KNN) The textile sector comprising of a fair share of Micro, Small and Medium Enterprises (MSMEs) are looking at the government to give exemption on the payment of IGST for sport of accessories.

The demand comes in response to the the recent GST council meeting, wherein the council didn’t make any announcement in this regard.

In the 26th GST council meeting held on 10 March 2018, the council decided extending it has  exemption of IGST payment for imports of machinery under EPCG scheme and inputs, raw material under Advance Authorization Schemes up to 01.10.2018, further six months beyond 31.03.2018, a move that is welcomed by the sector.

Raja M Shanmugham, President of Tirupur Exporters Association welcomed the GST Council decision.

“The move will help units import machinery, especially the MSME exporting units that have been suffering in the recent times due to blockage of capital including delay in GST refunds.

He however raised that the council must take into account the need of exempting IGST for import of accessories.

“It is important to give exemption as like in Pre GST period, when the accessories are imported under Export Performance Certificate (EPC), issued by AEPC”, he said.

TEA informed that the units have to pay the IGST in upfront and experiencing difficulties of cash blockage. The association will be taking the matter again with the GST council and push for their demand. (With Inputs from a media report) (KNN/DA)