It is heartening that the New Year has started on an optimistic note. According to the latest reports exports have been showing positive growth and this trend was seen since August 2016 but for a slight fall in October 2017. The export scenario for the MMF textile sector has also been upbeat and as per the Ministry of Commerce data for the period April-October 2017 exports registered a almost 5% growth as compared to the same period of the previous year. The encouraging news is that all the segments of the MMF textiles i.e. fabrics, yarn, made-ups and fibre have witnessed positive growth which is a good sign. I am confident that exports will pick up momentum in the months to come. Although achieving the target would seem uncertain let’s hope that exports in the remaining two months of the financial year will bring cheer to the MMF textile industry.
I am also glad to inform you that last month I along with the Executive Director had a Meeting with Shri Suresh Prabhuji, Hon’ble Union Minister of Commerce & Industry during which I put forth the grievances faced by the exporters of MMF textiles post implementation of GST issues. Many of the issues and gray areas on GST since have been addressed and clarified on export front. There are still some issues which need to be settled. The Hon’ble Minister has been supportive and has assured to look into the matter. During our interaction we raised the issue about the double taxation on ocean freight which was subsequently resolved. The Hon’ble Commerce Minister also referred the issues on need for exemption of IGST on purchase of Capital goods and inclusion of Merchant Exporters under duty equalization scheme and the delayed port clearances to the DGFT for their examination and appropriate action. I am sure that these issues will also be ironed out soon.
Since its implementation, GST has been confusing exporters and there is a need to educate them on the GST issues. Towards this endeavor the Council has been holding series of Workshops/ Interactive Meetings inviting experts on the subject to educate exporters on the issues. Last month the 3rd Workshop was held in Surat and the 4th Workshop was held in Mumbai on 12th January 2018. I am glad to inform you that the Workshops evoked a good response from member exporters. During the Workshop at Mumbai three prominent speakers viz. Shri Dilip Phadke a Chartered Accountant by profession and an expert in the field of GST; Shri A. Ravindra Kumar, Joint Director, Texprocil and Shri Suyog Nawal, an indirect tax professional head with ZMHS & Associates, Chartered Accountants enlightened the member-exporters on the GST matters. The Workshops helped member-exporters understand the GST issues and repose their confidence in GST. The response to the Workshop and requests from members for holding such Workshops/Seminars has overwhelmed the Council and we plan to continue to organize such Workshops/Interactive Meetings in future too.
This month’s issue features late Shri P.K. Badiani ji in the section ‘Glimpses from the Past’, our last year’s Life Time Trophy Achievement Winner and Past Chairman, Shri V.K. Ladia ji has shared his personal views on the industry in ‘Stalwarts Speak’ and the column on ‘Success Stories’ features the meteoric rise to success of M/s Wellknown Polyesters Ltd.
I would also like to inform you that from February 1, 2018 the E-way Bill (EWB) system will be issued to transporters for moving goods from one state to another. The E-way Bill (EWB) system will ensure hassle free movement of goods throughout India and prevent the evasion of tax, inter-state movement of goods. The E-way Bills system for intra-state movement of goods will be implemented from 1 June 2018. Initially the system may seem inconvenient but once the processes are set, it will become smooth. These processes may lead to consolidation of small time transporters and bring efficiencies in terms of delivery and help reduce the overall cost of transportation.
20th Jan, 2018