Apparel exporters' concerns over the goods and services tax (GST) were broached in front of the Prime Minister's Office (PMO), as representatives meeting officials on behalf of the exporters
insisted on the extension of rebate on state levies (RoSL) and a duty drawback.
Both demands were pitched for a temporary period until issues related to the new tax regime are sorted out.
The almost half-an-hour meeting saw issues such as the problem of 'invisible' or hidden taxes being raised in front of PMO
officials. Representatives claimed there were taxes that were not subsumed under GST, thereby, adding to the overall cost of dealings.
Industry players feel that these issues need to be addressed immediately, otherwise, the industry will be headed towards a complete shutdown.
"Trade is going through a major crisis. We need the government to extend the duty drawback
till March 31, 2018. We have also told PMO
officials to help us in getting our refund amount," said Ashok G Rajani, chairman, Apparel Export Promotion Council (AEPC).
Rajani, who attended the meeting and briefed the government officials on the pressing issues facing the industry, felt the government may consider the proposed measures.
Following the meeting, the Drawback committee was directed to go through tax details shared by the representatives. The committee has been reportedly asked to work on them and submit the final figures by Monday.
The meeting was attended by PK Mishra, Additional Principal Secretary at the PMO
and Revenue Secretary Hasmukh Adhia.
Friday's meeting comes after exports
of ready-made garments
fell by nearly 41 per cent in October.
Refunds for RoSL
and drawback charges are not provided as the government claims that these have already been subsumed under GST- a claim that is contested by the industry.
On the one hand, we are hit by GST
and on the other front, the appreciation of Indian rupee is also hurting us, said Rajani.