India’s textile and apparel body, Tirupur Exporters Association (TEA), appreciated the efforts of the Commerce Ministry to extend the IGST exemption till April 1 next year. TEA said that this move will benefit the exporters who are looking to import machinery to improve their business.
It is pertinent to mention here that, previously the exemption from paying IGST while importing machinery was valid until the end of September this year, which is now extended for another five months. In a press statement released, Raja M. Shanmugham urged the central Government to extend these benefits to other exporting units in Domestic Traffic Area (DTA) in a bid to aid the domestic exporters.
Furthermore, the TEA President mentioned that this extension will provide much-needed help to the Tirupur Cluster which is eyeing to import machinery from other countries, especially the Micro, Smart, and Medium Enterprises (MSME) units that are still recovering from the macroeconomic changes after the implementation of GST and demonetisation. Shanmugham also marked out that the exporting units cannot get IGST refund if they don’t have domestic sales and it is a major issue for them. TEA claimed that in Tirupur’s hub, around 95 per cent of the exporting units do not have domestic sales.
Additionally, Raja M. Shanmugham has sent a letter, requesting to extend the IGST payment to Union Minister of Commerce & Industry, Suresh Prabhu; Department of Commerce, Dr. Anup Wadhawan; Directorate General of Foreign Trade, Alok Vardhan Chaturvedi, and to the PMO office to look into this issue on urgent basis.