Over 90% of the textile and clothing industry in the MSME sector causing delays and affecting the financial capability of the units

YarnsandFibers News Bureau 2018-05-28 12:44:00 – Coimbatore

The industry had seen reduction in downside and ROSL by over 5 % of FOB since the pre-GST period. Also, Indian textile and clothing exporters did not have better access in countries markets such as the European Union which countries such as Bangladesh and Vietnam had. These had an impact on the exports. Though annual apparel exports are at 17 billion $ now, the industry is confident of 20 % growth this financial year if there a level-playing field.

In the two-hour meeting, the industry explained the issues of concern, pending GST refunds and slow disbursement of rebate of State levies (ROSL). The embedded and inverted taxes were not considered for refund and there was a delay in receiving the GST refunds, they said. Over 90 % of the textile and clothing industry was in the MSME sector and these delays had affected the financial capability of the units. The exporters were unable to book orders during the peak season as expressed by Mr.Magu.

HKL Magu, chairman of Apparel Export Promotion Council said the Finance Minister had instructed the officials to immediately identify the Central and State embedded taxes and work out a reimbursement mechanism. The Ministry would also expedite refund of GST and ROSL in a time-bound manner, as told.

He also added that the representatives from apparel, made up, and textile segments met the Union Finance and Textile Ministers and officials of the two ministries on Sunday.

The Union Government has assured the textile and clothing industry that it will identify Central and State embedded taxes and work out a reimbursement scheme soon.

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