The lower rate of refund may affect the export of textiles or readymade garments
Till now Andrew Luck Colts Jersey , the Central Board of Excise and Customs did not consider sarees to be 鈥渕ade-up鈥?or readymade garments. A 2 per cent excise duty is levied on 鈥榤ade-ups鈥?that cost over 鈧?,000.
The Government of India has announced that it would defer the GST provision that mandates online vendors and suppliers to pay tax for payments made to them by ecommerce companies. The provision, as per reports, will not come into effect before April 2018.
As per the rules of GST, ecommerce players are entitled to 1% tax collected at source (TCS) on payments upwards of $3 Peyton Manning Colts Jersey ,823 (INR 2.5 Lakh) to sellers.
The development, however, brings vendors some much-needed relief ahead of the Diwali season.
The sharp reduction in shortage for textile and clothing products announced by the government can slow down exports of these goods, according to industry.
The disadvantage announced for clothing is 2% versus 7.7% earlier. In the case of make-ups, it was 7.3% and has now been reduced to 2%.
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鈥楥ompany capital problem鈥?br > The excise and service cost components are subject to the goods and services tax and only the basic customs duties are reimbursed under the disadvantage scheme. This was on the expected lines. But the reduction of the disadvantage rates is steep and the GST system does not work as expected Khari Willis Authentic Jersey , according to the industry industry. There is a delay in the refund of the import tax under GST.
Annual textile exports stagnated over the last three years at about 37 billion dollars. The reduction of refunds will be another contributing factor to slow down exports, according to sources.
The government must extend the transitional provision for reimbursement of duty and state tax rebates (ROSL) until the end of March next year, according to industry representatives.
鈥淎n important area of 鈥嬧€媍oncern for exporters is the excessive delay in GST repayment,鈥?said Ujwal Lahoti, chairman of the Cotton Textiles Export Promotion Council. 鈥淓xporters who have shipped their goods in July have not yet paid a refund of income tax credits or IGST Bobby Okereke Authentic Jersey , which has caused serious workforce problems for a large number of exporters,鈥?he added.
Currently, the ROSL scheme for reimbursement of state taxes on export goods for clothing and make-ups.
However, the scheme does not cover embedded state taxes, such as electricity tax and market share Parris Campbell Authentic Jersey , from fiber to make-ups, he said.
The Promotion Promotion Promotion Board said that it was in agreement with the Disadvantage Committee and the relevant ministries for the treatment of multiple embedded and blocked taxes not covered by GST or disadvantage. Industry expected continuation of current present rates until the consultation was completed. The low disadvantage announced for apparels is a blow when the industry is faced with a continued decline in exports, according to the board in a press release.
The government of the Union announced a special package in 2016 to strengthen clothing and export exports and improve the premium rates and ROSL. The reduction of the premium rates now removes the benefits for exporters. The government should again look at the disadvantage rates for textiles, according to the chairman of the Southern India Mills Association, P. Nataraj.
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