Tirupur: Tirupur MP Sathyabama met Minister Arun Jaitley and filed a plea regarding the demands of Tirupur garment industry.
Tirupur: Tirupur MP Sathyabama met Minister Arun Jaitley and filed a plea regarding the demands of Tirupur garment industry.
One among the two letters penned by MP Sathyabama states as follows:
"The Tirupur Exporters Association “TEA” comprising of 1063 members is striving for the development of knitwear exports and also Tirupur town. Out of total members, 80% of the units are in MSMEs and are doing knitwear exports to more than 100 countries. They have certain specific issues related to NPA and GST related problems. Due to delay in getting ROSL amount, duty drawback, GST refund, exporting units are unable to pay the bank dues".
"MSMEs are struggling and are not in a position to repay the loan to banks, due to blockage of receivables, through ROSL, GST and drawback from the government. The total receivables pending are to the tune of Rs.1200 crore to Tirupur knitwear exporting units".
"The Basel III norms may be applicable for corporate companies and it is too difficult for MSMEs to follow the same. I wish to point out that the delay in payment could have been avoided, if the government had disbursed the receivable on time. Therefore, the delay in repayment of dues is entirely not the fault of MSMEs", the plea reads.
The MP urged that the government to device a suitable scheme instead of following Basel III norms, exclusively for MSMEs, and advice the banks to consider the government receivables and to that extent not to classify the units as SMA-I/SMA-II/NPAs. And, also to extend classification period for MSMEs from 90 days to 180 days to another one year.
In another plea, MP Sathyabama stated that "From less than Rs.10 crores in 1984 to about Rs.30,000 crores in 2017-18, the achievement is from Three million to three billion in three decades".
"Hence, I wish to bring your kind notice that despite the permission given for imports made under EPCG scheme, the relief has not been extended for imports (like fabrics) made under Advance Authorization scheme. Therefore, I request the Hon’ble Minister to kindly permit IGST refund claims of exporters who imports inputs under Advance Authorization scheme" she added.
"The exporting units are now manually filing EGM, instead of which online option should be implemented for GST refund", she noted.
One among the two letters penned by MP Sathyabama states as follows:
"The Tirupur Exporters Association “TEA” comprising of 1063 members is striving for the development of knitwear exports and also Tirupur town. Out of total members, 80% of the units are in MSMEs and are doing knitwear exports to more than 100 countries. They have certain specific issues related to NPA and GST related problems. Due to delay in getting ROSL amount, duty drawback, GST refund, exporting units are unable to pay the bank dues".
"MSMEs are struggling and are not in a position to repay the loan to banks, due to blockage of receivables, through ROSL, GST and drawback from the government. The total receivables pending are to the tune of Rs.1200 crore to Tirupur knitwear exporting units".
"The Basel III norms may be applicable for corporate companies and it is too difficult for MSMEs to follow the same. I wish to point out that the delay in payment could have been avoided, if the government had disbursed the receivable on time. Therefore, the delay in repayment of dues is entirely not the fault of MSMEs", the plea reads.
The MP urged that the government to device a suitable scheme instead of following Basel III norms, exclusively for MSMEs, and advice the banks to consider the government receivables and to that extent not to classify the units as SMA-I/SMA-II/NPAs. And, also to extend classification period for MSMEs from 90 days to 180 days to another one year.
In another plea, MP Sathyabama stated that "From less than Rs.10 crores in 1984 to about Rs.30,000 crores in 2017-18, the achievement is from Three million to three billion in three decades".
"Hence, I wish to bring your kind notice that despite the permission given for imports made under EPCG scheme, the relief has not been extended for imports (like fabrics) made under Advance Authorization scheme. Therefore, I request the Hon’ble Minister to kindly permit IGST refund claims of exporters who imports inputs under Advance Authorization scheme" she added.
"The exporting units are now manually filing EGM, instead of which online option should be implemented for GST refund", she noted.