A respite has come for the ailing Indian textile industry which has been facing capital issues from quite a long time due to GST (Goods and Services Tax) refund delay. The Central Government has reportedly announced to address the refund pending claims of GST and IGST in as early as 20 days.
The decision was announced by the acting Union Finance Minister Piyush Goyal after a meeting with Textile Export Promotion Council (Texprocil) and other associations. The meeting was also attended by Union Textile Minister Smriti Zubin Irani.
In addition to GST refunds, FM also assured the exporters of considering the Pillai Committee’s recommendations on duty drawback rates. The issues of embedded taxes for all textile products will also be examined, informed Goyal.
ROSL rates for made-ups will also be reviewed by the Centre. Alternative export promotion schemes are also under consideration of the Government, the Minister apprised.
The delay in GST refund and RoSL disbursement have been a major cause of concern among the apparel export industry which has made them paralysed to book orders; thus making the sector uncompetitive.
A delegation comprising officials of Apparel Export Promotion Council (AEPC) and representatives of the Indian apparel and textile industry recently met the Finance Minister, Textile Minister and senior officials of Textile Ministry, to put forth the issues faced by the industry.
They highlighted the issue of decline in textile and apparel exports over months; blockages in GST refund; expansion; employment; and disbursement of RoSL benefits during the meeting held at North Block in New Delhi.
It remains to be seen how Government makes the move to support the tumbling exports from the country. Any official update on the move by the Government will be shared as and when received.
