The Indian textile and apparel body, Tirupur Exporters Association (TEA) has requested the central government to extend the exemption from the payment of IGST while importing machinery under EPCG scheme, which is currently valid till the end of this month.
Raja M Shanmugham, President, TEA marked out that if the exemption is not extended, exporting units will come under the additional burden of paying IGST. “Upfront payment of IGST will affect the working capital of the exporting units as the refunds of GST through ITC refund route will take time to reach in hands of the exporter,” the president added.
The textile and apparel body elucidated that since over 80 per cent of the exporting units is (Micro Small And Medium Enterprises) MSMEs, it is difficult for them to meet their financial requirements, which eventually affects their day to day operations.
Shanmugham added that constant modernization is the need of the hour for the apparel exporting units, as nowadays the buyers are demanding consistent quality and installation of state of the art machinery.
Notably, TEA’s president said that he has sent letters to the central government urging it to extend the IGST payment exemption on urgent basis.