Page 10 - Craftcil May & June 2017
P. 10

in focus

                               EPCH takes up issues of the sector with the

                              Handicrafts Sectoral Group of GST Council

            Delegation calls on Mr. Pradeep Goel, Commissioner, CBEC - the Nodal Officer of Handicrafts Sectoral

                   Group on GST, presents handicraft sector’s side at the first meeting of the Sectoral Group

               The GST Council has set up 18 sectoral groups for various
                                                                                                 The EPCH delegationon
           sectors of the economy in order to ensure smooth rollout of
                                                                                                 seen greeting Mr. Pradeep
           GST.  Mr. Pradeep Goel, Commissioner, CBEC is the co-convenor
                                                                                                 Goel, Commissioner, CBEC
           of the Handicrafts Sectoral Group. The first meeting of this
                                                                                                 and presenting the
           Sectoral Group was held at New Delhi on 17th June, 2017.                              handicraft industry’s
           Senior officers of the Ministry of Finance also attended the                          concerns as well as
           meeting and the handicrafts sector was represented by Mr. OP                          representation in
           Prahladkha, Chairman, EPCH and Mr. Rakesh Kumar, Executive                            connection to GST
           Director, EPCH.  Further, industry associations like The
           Handicrafts Exporter’s Association, Delhi; Jodhpur Handicrafts
           Exporters Federation; Handicrafts Exporters Association, Agra;
           Buying Agents Association, Delhi; and some prominent
           exporters also attended the meeting.
                Mr. Rakesh Kumar made a presentation with an overview
           of the handicrafts sector including exports, export markets, craft
           clusters, various handicraft segments and the manufacturing
           processes.  All issues pertaining to the handicrafts sector were
           taken up one by one and included the following:
           •   Handicrafts – Classification on GST Schedule :
           ‘Handicrafts’ is currently exempted from Central Excise and
           Value added Tax (VAT) in various states, the rates on handicrafts
           sector are indicated at the 4 digit HS classification  and that too
           on higher side for handicrafts items. The flat rate of 3% GST may
           be made applicable for handicrafts sector.
           •   Job Work :  GST Act does not provide any relief to the
           sector particularly with respect to the provision contained in
           the Section 9 (4) with regard to the Reverse charge in case of  basic customs duty, the exporters will lose to the extent of
           supplies from un-registered persons.                  40-50% and will incur losses. The Government may consider
           •   Sale to foreign tourists : to be considered as a deemed  the utilisation of these scrips against all types of GSTs.
           export. Mechanism to be developed to exclude them from GST.  •  GST on fair participation : Participation in B2B fairs
           •   Stock in hand as on 30th June 2017 : A limit of one  within India to be treated similar to the process of movement
                                                                 of goods (No Sale or Purchase) and to be exempted from GST.
           year should be removed for exporters for allowing ITC for
                                                                 Further, participants participating in fairs in various states to be
           stocks only for one year purchases in case of exporters.
                                                                 exempted from registering as a casual taxable person in the
           •   GST on Sale of Scrips : The utility of the scrips apart from
                                                                 state where the exhibition is being held.

            10  CRAFTCIL • May-June 2017
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