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Textile exporters seek exemption from GST


Textile exporters have urged the government to exempt them from the integrated goods and services tax (IGST). The GST Council has finalised rates between 5 and 28 per cent of applicable IGST on various products. Additionally, 5 per cent GST is applicable on job work also. “Merchant exporters cannot benefit from the facility of exports under bond /letter of undertaking (LUT). There is no enabling document prescribed by the government under which goods can be cleared by a manufacturer without charging IGST meant for exports by a merchant exporter against bond/LUT. In absence of such a provision, the manufacturer charges IGST on the goods supplied to the merchant exporter meant for exports under bond/LUT. In the erstwhile central excise regime, there was a facility under which a merchant exporter who has executed a bond (B-1 bond) was provided with C T 1 certificates. Introduce a similar facility at the earliest so that the merchant exporters exporting under bond / LUT can get IGST-free goods from the manufacturers,” said Ujwal Lahoti, chairman, The Cotton Textiles Export Promotion Council (Texprocil).
 
The Business Standard, New Delhi, 10th August 2017

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