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25 Jul 2024, Edition - 3299, Thursday

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Export decline, GST non-refund hits knitwear industry hard

Covai Post Network


Coimbatore : Knitwear exports from nearby Tirupur declined by 15 per cent from Rs 26,000 crore in 2016-17 to Rs 23,000 crore in 2017-18, leading to a “unusual situation” in the industry, a top Apparel Export Promotion Council (AEPC) official said.

GST implementation and non-refund had resulted in blockage of funds and reduction in duty drawback and rebate on state levies had led to capital shortage. This resulted in exporters being unable to take orders, AEPC Vice-Chairman A Shaktivel told reporters in nearby Tirupur.

Shaktivel said the total reduction of incentives like drawback and RoSL stood at 5 per cent, down from 11. Besides, non-signing of Free Trade Agreements (FTA) by India with European Countries, Australia and Canada resulted in giving edge to competing countries like Bangladesh and Sri Lanka, he said..

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The council had already informed the Government that there was a shortfall of about 5 per cent under GST and requested it to refund immediately the embedded tax and also GST input tax credit.

The industry had cut production and was working only three to four days a week, thus rendering lakhs of workers jobless. If the situation continued, there would be serious implications in the major knitwear hub, which contributed 45 per cent of the country’s knitwear exports.

Tirupur is hosting the 45th India International Knit Fair from May 16 to 18, which could be a ideal platform to develop business prospects and pursue new trends, he said.

Nearly 150 buying houses and 50 buyers had confirmed the participation in the fair to be inaugurated by local MP V Sathyabama in the presence of AEPC Chairman HKL Magu.

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