‘Risky exporters’ request their voice to be heard!

by Apparel Resources News-Desk

05-October-2019  |  3 mins read

More than 500 Indian apparel exporters are struggling ever since Government has identified them as ‘risky exporters’.

These ‘risky exporters’ are facing the challenge of 100 per cent inspection at the ports in addition to their refunds getting suspended.

In June 2019, the Central Board of Indirect Taxes and Customs (CBIC) had identified 5,106 exporters (including all industries) under ‘risky exporters’ category. According to CBIC, these exporters had claimed GST refunds based on bogus invoices. The officials would manually check their claims before issuing refunds.

Team Apparel Resources confirmed with industry experts that there are at least 500 apparel exporters too in this list, of which some are well-known names.

It was said that refunds would be released after verification of input tax credit within a maximum of 30 days, but exporters claimed that they have not received their refund regarding duty drawback, IGST and RoSL benefits.

Some of the exporters claim that despite not generating any bogus invoices, their name has appeared in this list. What has added to their concern is that they (exporters) are not even getting any chance to put their side to the officials.

Raja M. Shanmugham, President, Tirupur Exporters’ Association (TEA), said “These units are undergoing 100 per cent inspection at ports further to classification of these units under ‘risky exporters’ category. The concern is that these units do not know the exact reason for them being classified as ‘risky exporters’. Moreover, during inspection, the garments taken out of the consignment are getting soiled and unpressed, which creates a bad reputation among buyers and affects the future orders also.”

He then added “We wish to note that instead of checking at ports, the concerned units can be asked to provide the documents to justify their genuineness.”

Industry insiders told that there are few exporters who use bogus invoices, but some of the genuine exporters are also suffering due to the above-mentioned decision of the Government.

After trade bodies raised this issue to the Government, they were assured 2 months back that if any discrepancies are not found in their consignments, then gradually they will be given some relaxation especially with regard to 100 per cent physical examination of shipments; however, nothing has happened since.

Share This Article