The Tiruppur Exporters Association (TEA) has requested the Central Board of Indirect Taxes and Customs (CBIC) to extend the benefit of exemption of integrated goods and services tax (IGST) to other exporting units in the Domestic Tariff Area (DTA) after the board recently announced that export-oriented units will be exempt from IGST from October 1, 2018, to April 1, 2019.
According to TEA president Raja M Shanmugham, the notification exempting exporting units from IGST while importing machinery under the Export Promotion of Capital Goods (EPCG) scheme is valid till September 30 this year and, if not extended, such units have to pay IGST upfront, which will be an additional burden.The Tiruppur Exporters Association has requested the Central Board of Indirect Taxes and Customs to extend the benefit of exemption of integrated goods and services tax (IGST) to other exporting units in the Domestic Tariff Area after the board recently announced that export-oriented units will be exempt from IGST from October 1, 2018, to April 1, 2019.#
Upfront IGST payment will also affect the working capital of the exporting units in Tiruppur, most of which are micro, small and medium enterprises, as GST refund through input tax credit (ITC) route takes time, according to a TEA press release. (DS)
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