TEA Requests to Extend IGST Exemption for Import
Tiruppur Exporters’ Association (TEA) president, Raja M Shanmugham in a press release issued on February 26 to extend IGST exemption on export. He has sent a representation to the Commerce Minister for extending IGST exemption for import if Capital Goods under EPCG scheme and Inputs under Advance Authorisation scheme beyond 31st March 2019.
TEA president said after implementation of GST, the Association had requested for exemption from the payment of IGST while importing capital goods under EPCG scheme or inputs like speciality fabrics under Advance Authorization scheme and considering the need, the Government permitted for exemption from payment of IGST for a period of six months on each occasion and finally, till 31st March 2019.
Shanmugham pointed out that the continuous modernization/expansion is regularly taking place in Tirupur, comprising the sector has more than 80 per cent in MSMEs to enhance the quality for fulfilling the buyer’s requirements and also increase the productivity. At this juncture, the exporting and job working units are having doubt on the continuation of IGST exemption beyond 31st March 2019 and the major concern is that the IGST paid for Capital Goods could not get adjusted/refunded. Due to this, the units are under confusion whether to place the order with Machinery suppliers by presuming that the exemption would continue beyond 31st March 2019 or else to wait for the clarification from the Government side. He noted that once if the election code of conduct is announced, probably in the second week of March and in case, if the IGST Payment exemption notification has not been issued, then it would be a big setback for the units, particularly MSMEs going for modernization.
Shanmugham has requested the Commerce Minister to help for extension of exemption for another two years till the industry bounce back on urgent basis. He said he has also represented to the Union Minister of Finance, Union Minister of Textile, Commerce Secretary, Textile Secretary, DGFT including Yogendra Garg, Commissioner of Central Excise, Textiles, GST Council, CA. Upender Gupta, IRS, Additional Commissioner, GST Council.
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