EPCH urges FM to exempt handicrafts from GST
The Dollar Business Bureau
The Export Promotion Council for Handicrafts (EPCH) has requested the Finance Minister to exempt the handicrafts sector from the Goods and Services Tax (GST).
The sector is apprehensive that GST may have some difficult tasks for the segment, Rakesh Kumar, Executive Director, EPCH said in a statement.
The handicrafts sector currently has 100 percent exemption under central excise. However, the sector may be covered under GST with higher taxes which can make the products un-competitive in the foreign markets, he said.
This concern was raised by a delegation of EPCH that met the finance minister on Monday.
Kumar further said that while the exporters are being permitted to get refunds of the taxes, there will be entire capital blockage as currently proposed for refunds under the GST.
The delegation has urged the finance minister that the sector should be exempted from the GST, he added.
Exports of handicrafts from India grew 18.28 percent to Rs.13,005.35 crore, during the first six months of the financial year 2016-17.