GST relief to ease liquidity crisis, says Texprocil

Govt has tried to resolve the liquidity issues faced by exporters, said chairman, Texprocil

By ensuring refunds for the goods and services tax (GST) amounts filed during July and August would be made available by October 10 and 18 respectively, the government has tried to resolve the liquidity issues faced by exporters, said Ujwal Lahoti, chairman, Texprocil.

He further said the facility given to the merchant exporters, who account for almost 40 per cent of India’s textile exports, to pay a nominal amount of 0.1 per cent as GST while claiming goods from manufacturers for export goods will ensure that they do not face cash flow problems.

This step has come as a great relief to the trade. Other measures such as exempting export promotion schemes like Advance Authorisation Scheme and EPCG (export promotion capital goods) from the payment of GST up to March 31, 2018, should lead to a spurt in investments, Lahoti said.

The GST council on Friday reduced the rate on manmade fibre yarn from 18 per cent to 12 per cent and duty credit scrips from five per cent to “zero” which is set to give a boost to exports.

These measures would instil confidence in exporters and enable them to work towards achieving the export targets both at the individual and collective levels, Lahoti added.