The Export Promotion Council for Handicrafts (EPCH) organised a stakeholders’ consultation meet at EPCH House, New Delhi on Monday to discuss on Goods and Services Tax (GST). Representatives of various associations in the industry and exporters discussed the implications of GST on handicrafts sector.
EPCH will submit a petition to the GST council to safeguard the interest of the handicraft sector. EPCH has sought the service of a leading consultant to prepare the petition. A petition will also be submitted to various state governments and to the union mninistry of Finance urging to protect the interests of the sector. The petition will be submitted in a meeting which is likely to held soon with the union finance minister and other senior government officials.
Members of EPCH will also meet state finance ministers to discuss the issue as they are members of the GST council.
The apprehensions raised by EPCH are blocking of working capital, and high cost of capital if handicrafts sector not exempted from GST. It also demands to allow merchant exporter to procure goods without paying taxes, to clarify job workers procedure, to simplify refund procedure, and not to restrict utilization of duty credit scrip (only to payment of customs duty).
The exports of handicrafts during the first six months of 2016-17, Rs. 13005.35 crores, registered a growth of 18.28% over the corresponding period of the last year. In 2015-16 it was Rs. 21457.91 crores, a rise of 6.85% compared to the previous year.