The Synthetic & Rayon Textiles Export Promotion Council (SRTEPC) has asked the Union minister of commerce and industry Suresh Prabhu for integration of yarns and fabrics segment under Rebate of State Levies (RoSL) scheme. Talking about the numbers, the council has also asked for 6% RoSL rate to be calculated for reduction of yarns and fabrics exports.
The state taxes and duties are neither included in the slab of GST nor deducted, said SRTEPC stating that these charges included particularly for yarns and fabrics exports about 6% of FOB value of exports.
In the assembly with the minister, the council has talked about various problems which are faced by the MMF textile segment about export promotion incentives, GST, MEIS Scheme, etc.
Narain Aggarwal, who is the chairman of the MMF textile segment said to the minister that it has been very tough for the industry to cop up with GST rules. As is following the reversed duty structure, the MMF textile trade and industry has been getting a great look after as compared to other fiber segments. “Over 14 months have passed since the new tax regime was implemented in India, but unfortunately, there are various anomalies in the GST system that has been affecting the MMF textile segment.”
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Firstly, the government should study various problems along with refund of Input tax credit availed on input services, addition of MMF textile products falling under equal or lower rate of GST, refund of IGST on capital goods, replacement of double taxation on ocean freight, quick refund of accumulated Input Tax credit and insertion of MMF textile products falling under equal or lower rate of GST. Apart from this, neglect the import of capital goods from GST is highly affecting investment in GST sector and vanishing the goal of ‘Make in India’ movement started by the government.
Ronak Rughani, Vice-chairman of SRTEPC, stressed the problem of ITC lapse said by the government. The lapse of unused credit will be a massive setback for the textile exporters as this preparation is against the primary settlement principle that the right validity earned can’t be destroyed. He reported to the minister that the lapsed amount is directing towards great losses in the books of accounts.
Rughani said to the minister that, “MEIS scheme gives much-needed cushion for increasing competitive edge of the MMF textiles that have been facing tough price competition from countries like China, Taiwan, Korea, Indonesia, Vietnam, etc. The governments of the South Asian countries incentivise exports through a refund of duties as high as 17-21 percent apart from giving multi-layer subsidies.” All the rewards falling under MEIS Scheme required to be extended to all MMF textiles along with fibre, yarns, fabrics and made-ups and MEIS reward rates should be increased to 5% for all the MMF textile tariff lines. (RR)
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