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New Delhi –  24th October, 2017 –   The exporters were facing lot of difficulty on implication of GST procedures.  Shri O.P. Prahladka, Chairman- EPCH welcomed the Government decision to ease the procedure for merchant exporters to this effect.   Handicrafts  merchant exporters now can purchase the goods from registered suppliers by paying 0.1% GST and amount paid as GST  will be refunded on doing export within 90 days  with the conditions such as the registered supplier shall supply the goods to the registered recipient on a tax invoice,  the registered recipient shall export the goods within a period of 90 days, the recipient shall be registered with an EPC or commodity Board, the recipient can export the goods either directly to the port, inland container deport, airport or land customs station or directly to a registered warehouse from where the goods are to be exported, when goods have been exported, the registered recipient shall provide copy of shipping bill containing details of goods and service tax identification number  and tax invoice of the registered supplier alongwith proof of export general.

EPCH has urged the Government to reduce the rates of GST on 46 significant handicrafts items.  Shri O.P. Prahladka opined that Ministry of Textiles and Ministry of Commerce both have initially reacted sympathetically to the demands of  Handicrafts Sector and it is understood that Ministry of Finance is likely to provide the relief to the sector which has otherwise adversely affected the sector in the recent months.

The exports of handicrafts during the year 2016-17 was to the tune Rs.24,392.39  crores  showing a growth of  13.15% over the proceeding year.  The growth of exports of handicrafts can be affected as the exports during the month July to Sept., 2017 have shown a significant decline of -29.10% in rupee terms and -26.08% in dollar terms.    One of the important reasons cited by the sector is procedural bottlenecks and the irrational rates of GST.

Chairman – EPCH viewed that Government is very sensitive about the issues of the Handicrafts sector and procedural bottlenecks are being taken care such as the issuance of above notification.  However, the Handicrafts sector is impatiently waiting for reduction in rates of GST.

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