Council for Leather Exports urges Government for IGST exemption

By

Maverick Martins

Published
Oct 4, 2017

India’s leather industry is hoping the government will help revive their business by exempting them from the IGST (integrated Goods and Services Tax) on imports of raw materials and capital goods used in making products for exports, the Council for Leather Exports (CLE) said in a statement.
 

CLE said that the levy of IGST is affecting their business and hampering exports thereby reducing their competitive edge.
 
"The government may positively consider these requests, as the current situation is threatening to take away the business of Indian leather industry to competitors like Bangladesh, Vietnam and Indonesia," CLE said in a statement.

"Loss of competitiveness due to GST issues will be a huge loss to the industry which currently has an annual export turnover of USD 5.6 billion and employment of about 4.5 million, with predominant women employment," it added.
 
"The industry is facing financial burden and significant outflow of capital on account of levy of higher GST rates on major segments of the manufacturing chain and requirement of upfront payment of GST and then claim refund," the council said.
 
The council also demanded reduction of GST (Goods & Services Tax) on finished and composition leather from 12 per cent to 5 per cent.
 
In order to attract foreign investments in the sector, the council has further requested for cut in GST rates on leather gloves and garments from 28 per cent to 12 per cent.