Chairman, Vice Chairman and Convener, SRTEPC meet the Hon’ble Union Minister of Commerce & Industry
Shri Sri Narain Aggarwal, Chairman, SRTEPC; Shri Ronak Rughani, Vice Chairman, SRTEPC and Shri Anil Rajvanshi, immediate past Chairman, SRTEPC met the Hon’ble Union Minister of Commerce & Industry, Shri Suresh Prabhu on 29th September 2017 in New Delhi to discuss about the GST issues and the hardships being faced by the exporters due to GST.
The Chairman drew the kind attention of the Minister on the post GST adverse impact on the exports of manmade fiber textiles and pointed out that if protective measures are not taken on an urgent basis, exports may decline which will in turn affect the employment generation and foreign exchange earnings.
The Hon’ble Minister was informed that in the post GST regime the tax rate on manmade yarns has been increased from 12% to 18% which has made the cost of fabrics higher. In the GST regime duties on Spun, Textured, Fully drawn, Warp & Knit yarns is 18% and 5% GST on fabrics with no refund mechanism and this has resulted in huge accumulation of unutilized input tax credit (ITC) with the weavers.
It was also brought to his kind attention that the blocked and not rebated state input taxes and duties like transmission charges, electricity duty, cross subsidy on electricity bills, water cess, green tax, local body taxes, road taxes, labor Cess, etc., around 5% of FOB value of the textile exports has not been adjusted in the drawback or ROSL scheme to the yarn and fabric exporters.
The meeting of our Chairman, Vice Chairman and Convener with the Hon’ble Union Ministry of Commerce was successful, as subsequently the GST Council in its Meeting held on 6th October 2017 brought down the GST rates on MMF yarns and fibres from 18% to 12%.