New Delhi, Oct 27 (KNN) Voicing concerns of the textile sector comprising of a fair share of the Micro, Small and Medium Enterprises (MSMEs) an Appeal Export Promotion Council (AEPC) led delegation met Parliamentary Standing Committee on the impact of GST on Apparel Exports. 

AEPC informed the parliamentary committee about the difficulties that the smaller exporters are facing after the rollout of the new GST regime.

The exporters body lamented that the sector especially the MSMEs doesn't have the required resources for GST compliances.

Ashok Rajani, Chairman of AEPC in a press statement said the positive impact of GST is yet to be felt by the garment industry, where input costs have not come down.

Commenting of the impact with reference to the small and medium exporters, Rajani informed that  due to substantial increase of working capital and higher transaction cost.

MSME have to recruit services of qualified CA’s to be able to manage GST payments and refunds which is adding to the overall burden on the sector.

AEPC appraised the Parliamentary Standing Committee said that with such situation in place the exports from the sector are likely to fall drastically in the coming times.

The council further said that the sector is already facing tough times due to competition from rival counties, and the complications at home is harming the industry further.

The council through its presentation also drew the attention of standing committee members on the issue of extension of exemption of IGST on import under EPCG or Advance Authorization from 31st March, 2018 to December, 2018 to provide a longer window for investment decisions. Enhancement of MEIS to 5% for reimbursing increase in cost of working capital and higher transaction cost. (KNN/DA)