TIRUPUR: K. Subbarayan, Member of Parliament (Tirupur constituency), has made a representation to Union Finance Minister Nirmala Sitharaman, seeking expeditious refund of Integrated Goods and Services Tax (IGST) for Tirupur garment industry.
According to him, the IGST claims of the nearly 250 exporters from Tirupur comes to a whopping Rs. 500 crores. “The assurance given to release the amount after verification of input tax credit within a maximum of 30 days has not been kept. Non refund of duty drawback, IGST and release of
Rebate of State Levies (RoSL) benefits, had resulted in complete erosion of working capital and caused capital crunch”, he pointed out.
The MP also wanted the Ministry to initiate steps to prevent any harassment to exporters after been categorized as ‘risky exporters’ by Central Board of Indirect Taxes and Customs (CBIC).
The CBIC had identified a total of 5106 ‘risky exporters’ who had claimed GST refunds based on bogus invoices, in 2019. It included more than 250 exporters from Tirupur.
BUDGETARY ALLOCATION:
Mr.Subbarayan stressed the need for a budgetary allocation to introduce a scheme for low-cost housing for the predominant migrant workers in Tirupur knitwear cluster. The move would help project Tirupur as an attractive destination for employment.
Besides, there should be initiatives in the coming budget to incentivize solar and wind energy generation, and a mega textile park should be set up.
