EPCH Delegation Raises Urgent Payment Concerns in Meeting with Union Finance Minister

New Delhi:– 15th February’2024 – A delegation of handicrafts exporters led by Syed Zafar Islam, National Spokesperson BJP met Nirmala Sitharaman, Union Finance Minister, Govt. of India in presence of Dr. Rakesh Kumar, Chairman IEML & Chief Mentor-EPCH and Mr. Avadesh Aggarwal, General Secretary, Moradabad Handicrafts Exporters Association (MHEA) raised an important issue of 45 days payment of goods supplied by MSMEs which is affecting MSMEs including Handicrafts exporters.

Dr. Rakesh Kumar, Chairman IEML & Chief Mentor-EPCH informed that although the decision is intended to support MSMEs, but the initial response is different. Making payments to MSMEs within 45 days is challenging for the Handicrafts industry, wherein the credit periods often last 180 days. He further added that for handicraft export shipment it usually takes 90 days to arrive at destination port and further 90 days for payment realisation.

Dileep Baid, Chairman, EPCH shared that we have been representing this issue for a very long time at various forum, the linking of 45 days MSME clause with Income Tax provision would result in non availing of deduction in expenditure by the MSME exporter thus increasing their tax liability. I hope with today’s meeting a positive outcome would come, thus relieving the entire handicraft sector.

Avadesh Aggarwal, General Secretary, Moradabad Handicrafts Exporters Association (MHEA) raised an issue of amendment in GST portal regarding E-way bill generation wherein traders will not be able to generate E-way bill until the goods are inward to them, by this GST evasion can be prevented. He highlighted other issues such as inclusion of some items like electrical fittings in a duty free import of essential embellishment, trimmings, tools and consumables provision which is offered to the handicrafts Sector, Production linked incentive scheme for handicrafts sector, relook at the RoDTEP rates etc.

The Union Minister gave a patient hearing to the issues raised and they will be looked into.

Export Promotion Council for Handicrafts is a nodal agency for promotion of exports of handicrafts from the Country and create brand image of magic of the gifted hands of millions of artisans and crafts persons engaged in production of home, lifestyle, textiles, furniture and fashion jewellery & accessories products in different craft clusters of the Country. The overall Handicrafts exports during the year 2022-23 was Rs. 30,019.24 Crores (US $ 3,728.47 Million), as informed by Mr. R. K. Verma, Executive Director, EPCH.