Page 10 - Craftcil July 2017
P. 10

in focus


                                                                                      lakhs, most of the supplies being
                                                                                      inter-state, attract GST and hence
                                                                                      require registration process. The
                                                                                      exporters gathered at the open
                                                                                      house were of a collective view that
                                                                                      this would ultimately affect the very
                                                                                      growth & well being of the
                                                                                      handicrafts sector. As the drawback
                                                                                      issue has not been fully resolved in
                                                                                      the new mechanism, most merchant
                                                                                      exporters apprehend that there are
                                                                                      compulsion of  shipping their goods
                                                                                      on lower drawback basis.  This is an
                                                                                      ultimate loss to the exporters.
                                                                                      Similarly the GST rates for MEIS scrip
           The Open House with Govt. representatives interacting with industry members on procedural  have neither been declared nor HSN
           bottlenecks being faced by them in the GST regime                          codes have  been finalised for the
                                                                                      same. The premium of such scrips
           were of the view that this notification was not providing full
                                                                 have already fallen in the market which is a clear loss to
           relief to them due to certification required from the GST
                                                                 exporters. Handicrafts items  had been exempted from excise
           department. The issues of the participants regarding
                                                                 and also there was VAT exemption in many states in the
           registration, refund of tax, etc. were answered by
                                                                 country. However, in the GST regime the GST rates of 12, 18 and
           Commissioner, Customs and other authorities present at the
                                                                 28% have been made applicable on handicraft items.
           open house.
                                                                 Handicraft exporters feel that a flat rate of 5% GST may be
               Mr. O P Prahladka, Chairman, EPCH, expressed serious  made applicable on handicrafts items with value cap of Rs.
           concerns on the issue of relief on job work, carrying of samples  5,000.
           for exhibitions/offices of buying agents, sending samples for
                                                                     EPCH has also brought out a comprehensive FAQs on GST
           display purposes and also free trade samples of no commercial
                                                                 and a discussion was also held on the same during open house.
           value to the buyers.
           He expressed that
           the issue of job work
           is getting aggravated
           as most exporters are
           located at
           metropolitan cities
           while artisans and
           crafts persons are
           spread in craft
           clusters in remote
           parts of the country.
           Though these crafts
           persons are
           exempted having
           sale below Rs. 20


            10  CRAFTCIL • July 2017
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