Leather exports may dip by 20% if GST-related issues go unheeded: CLE

Industry would require an additional working capital of Rs 3,200 cr under the new tax regime this year

The $ 5.6-billion leather exports from the country will be seriously affected due to certain impediments following the implementation of the goods and services tax (GST) regime, if the issues are not addressed immediately, said Council for Leather Exports (CLE). The Council welcomed the new tax regime and said that this would be beneficial for the country in the long term, though there are issues to be solved in the short term.

The industry is facing a financial burden and significant outflow of capital on account of levy of higher GST rates on major segments of the manufacturing chain and requirement