EPCH URGES UNION FINANCE MINISTER TO EXEMPT HANDICRAFTS FROM GST
Goods and Services Tax (GST) is one of the biggest taxation reforms in India and is a comprehensive tax levy on manufacture, sale and consumption of goods and services at a National level. GST is all set to integrate the state economies and boost overall Growth.
A delegation of the manufacturers, exporters and industry associations from all over India under the banner of Export Promotion Council for Handicrafts (EPCH) met Shri Arun Jaitley Hon’ble Union Minister of Finance at New Delhi on 17th October, 2016.
The delegation submitted the petition to the Finance Minister pertaining to the handicrafts sector highlighting the concerns of the sector in the forthcoming GST regime.
Mr. Rakesh Kumar, Executive Director, EPCH said, that the Hon’ble Finance Minister gave a patient hearing to the delegation and the following points were discussed during the interaction such as Rate of GST on Handicrafts, Tax-Free Procurements for exporters of Handicrafts, Optimization of Working Capital, Rate of Duty Drawback, Loss of credits under various situations, Refund Mechanism in case of Exports, Job work procedure, GST on sale of scrips and its Utilization, Stock from previous years.
As per Mr. Kumar the handicrafts sector has apprehensions that the GST regime may have certain tough tasks for the Small and illiterate force of the craftsperson’s engaged in the production of over 5 billion USD worth of handicrafts. The sector which has 100% exemption under Central Excise may be covered under the GST regime with higher taxes. This can make the products un- competitive in the international market.
Mr Rakesh Kumar specifically mentioned that though the exporters are being allowed for refunds of taxes but there will be complete blockage of capital as presently proposed for refunds in the GST. The delegation sought the handicrafts sector to be exempted from the GST.
Mr. D Kumar, Chairman EPCH said that the Hon’ble Minister also enquired about the future growth of the handicrafts sector and assured that interests of the handicrafts sector will be safeguarded in GST. The Finance Minister also interacted individually with the representatives of associations about the products from their region and its growth prospects.
The exports of handicrafts during the first six months of 2016-17 are Rs. 13005.35 crores registering a growth of 18.28% over the same period last year. The Handicrafts exports during the year 2015-16 were Rs. 21457.91 crores with overall 6.85% increase in comparison to last year
