After a meeting with Textile Export Promotion Council (Texprocil), acting Finance Minister Piyush Goyal, announced that the tribulation of the textile industry will be answered to by refunding the unresolved GST (Goods and Service Tax) and IGST (Integrated GST) on textile exports within 3 weeks (20 days). Union textile minister, Smriti Irani was also present in the meeting.
Considering the recommendations put up by the Pillai committee on duty drawbacks and embedded tax on the textile industry, the acting finance minister has promised to have a look into the matter. Also, the payments to be made in accordance to RoSL (Refund of State Levies) of textile exporters is to be dealt within 15 days, promises Goyal.
Although the delay in GST and RoSL reimbursement has been a subject of concern among the textile exporters not providing a chance to the textile export industry to bloom in India, the union government has plans to review the RoSL rates benefitting the industry and spurting its growth. Other possible schemes for export are also under consideration, says the minister.
According to Texprocil Chairman Ujwal R Lahoti, the cotton textile export which accounts for a $11 billion industry, can constitute a $20 billion industry in the next five years if the centre plays its part of supporting the sector by speedy refund of GST and IGST, along with an expansion of the RoSL schemes and reimbursement of the embedded tax on textile export.
The textile industry awaits these positive changes to get it rolling.