AEPC conveys Indian apparel
industry concerns to parliament
October 27, 2017
A delegation from
India’s Apparel Export Promotion Council (AEPC) today conveyed
exporters’ concerns over the impact of goods and services tax (GST)
on apparel exports to a parliamentary standing committee. In its
presentation to committee chairman Naresh Gujral, AEPC made him
aware of the difficulties being faced by smaller and medium
The requirement of dedicated resources for GST compliance has
also added to the time and cost of exporters, according to an
APEC press release.
Incorporated in 1978, AEPC is the official body of apparel
exporters in India that helps Indian exporters as well as
importers and international buyers.
Describing the overall impact of GST on small and medium
exporters to be burdensome and stressful due to substantial
increase of working capital and higher transaction cost, APEC
chairman Ashok Rajani said the positive impact of GST is yet to
be felt by the garment industry, where input costs have not come
This has adversely affected production and led to pressure on
margins due to lowering of drawback rates.
There is a strong likelihood of Indian garment exports dipping
in the coming days as competing nations like Bangladesh and
Vietnam have cost advantages because of preferential trade
agreements with major export markets and buyers are moving to
these destinations for sourcing, the committee was informed.
Exporters may be forced to shed jobs as well.
AEPC has requested early consideration of refund of blocked and
embedded taxes on purchase of ginned cotton and miscellaneous
central and state levies like power cross subsidy, stamp duty,
and property tax. It has asked for refund under Rebate of State
Levies (RoSL) as well.
The industry body has also asked for allowing utilization of
Merchandise Exports from India Scheme (MEIS) scrips for use in
payment of central GST, state GST and integrated GST to ease the
challenges being faced to working capital blockage and other
procedural issues. To arrest the decline in exports, AEPC wants
competitive exchange rate and rupee appreciation to be
stabilized to protect the interest of exporters. (DS)
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