Tirupur: Apparel exporters applauded the central government’s decision to continue the Merchandise Exports from India Scheme (MEIS), an incentive scheme to promote exports, till December 31, 2019.
MEIS would provide duty credit scrip to compensate the duty paid by the exporters, and it was challenged by the countries like the US at the World Trade Organization since India is a developing nation. Earlier, the central government announced that MEIS would be stopped after July 31. But the exporters were worried that it would further deepen crisis in apparel exports which was already facing several challenges including stiff international competition.
When GST was not in place, MEIS’s rate was 2% of the total value of exporting goods which was later increased to 4% after the implementation of GST. If scrapping MEIS would have been permanent the incentives which the exporters consider most important to continue in the business, would have been halved from what was given pre-GST.
Welcoming the government’s announcement, Tirupur Exporters’ Association president Raja M Shanmugham said, “It is important that the government should ensure that incentive’s percentage should be on par with that of the pre-GST period, if the apparel exports needed to grow continuously.”
Meanwhile, dyeing units were disappointed that the government did not exempt effluent treatment process from GST. Dyers Association of Tirupur president S Nagarajan said, “The government was imposing 12% GST on common effluent treatment plants for the process.
But earlier, there was no tax, and it was affecting the dyeing units. So, it should be withdrawn.” The association passed a resolution regarding the same in its 28th general body meeting held recently.
Published On : 16-09-2019
Source : Times of India