AEPC wants embedded taxes to be refunded through the drawback route before the onset of the peak festival season. Embedded taxes include the levies on cotton, electricity, input tax credit restrictions for man-made fibers used in textiles and purchases made from unregistered dealers.
Exporters also want the freedom to make payments of the necessary duties and taxes through scrip transactions as was permitted prior to the GST regime. Since the Middle East, South Asia and Africa have emerged as significant markets for Indian readymade garments and since a lot of orders were already booked before the introduction of GST, its felt the curtailment in duty drawback will adversely affect exports.
Apparel exporters have already been hit hard by an appreciating rupee and the non-refund of embedded taxes has put tremendous pressure on their working capital. AEPC provides assistance to Indian exporters as well as importers/ international buyers who choose India as their preferred sourcing destination for garments. It trains the workforce and supplies a steady stream of manpower to the industry, identifies the best countries to source machinery and other infrastructure from and brokers deals for its members and helps exporters showcase their best at fairs at home and the world over.
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