The Tiruppur Exporters’ Association, representing apparel exporters in Tiruppur, has welcomed the extension of exemptions announced on Saturday after the GST Council meeting for exporters.
According to the Association, the exporters are exempted till March 31, 2021 from payment of IGST and cess on the imports made under Advance Authorisation /EPCG/EOUs schemes.
This crucial decision brings relief to Tiruppur knitwear sector, as all the stakeholder units modernise the machinery continuously with imported capital goods and technology to meet the demands of the buyers. The concern of the units importing capital goods is that they will not be able to take Input Tax Credit (ITC) for the IGST paid. This has been addressed and the decision will also help the units importing speciality fabrics under Advance Authorisation scheme.
The decision will be another step that will boost exports, according to the Association.