The Export Promotion Council for Handicrafts (EPCH) has sent a delegation of the manufacturers, exporters and industry associations from all over India to Arun Jaitley, Union Minister of Finance, highlighting the concerns of the handicrafts sector in the forthcoming GST regime and requesting handicrafts sector to be exempted from the GST.
Rakesh Kumar, Executive Director, EPCH said, “GST regime may be tough on craftspersons engaged in the production of over US $ 5 billion worth of handicrafts as this would make the products un- competitive in the international market. Though the exporters are being allowed for refunds of taxes but there will be complete blockage of capital as presently proposed for refunds in the GST.”
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Following points such as Rate of GST on Handicrafts, Tax-Free Procurements for exporters of Handicrafts, Optimization of Working Capital, Rate of Duty Drawback, Loss of credits under various situations, Refund Mechanism in case of Exports, Job work procedure, GST on sale of scrips and its Utilization, Stock from previous years were discussed at the meeting.
It may be mentioned that the exports of handicrafts during the first six months of the financial year 2016-17 amounted to Rs. 13,005.35 crore registering a growth of 18.28 per cent against the corresponding period last year. Handicrafts exports during the fiscal year 2015-16 were Rs. 21,457.91 crore.
