Govt targets 18% growth in garments export this fiscal

The government is targeting garment export to increase 18 per cent in this financial year on the back special financial incentives given to the sector. The country registered exports of $17 billion last fiscal.

Kavita Gupta, Textile Commissioner, said the government has given an additional 10 per cent subsidy for the garment and made up segments, which means the home textile industry will effectively get 25 per cent capital investment subsidy on new machines they bring in, leading to efficiency and modernisation of the sector.

Subsidies have proved beneficial for the sector and led to increase in employment and attracted fresh investments, she said after inaugurating the 65th National Garment fair here on Monday.

The textile industry should utilise the various government schemes, she said.

The Clothing Manufacturers Association of India has organised a three-day national garment fair, the largest apparel trade show in Mumbai to showcase business opportunities and attract investments.

“We hope to generate 10 per cent increase in trade at ₹750 crore from this fair, which will display 1,005 brands of 822 exhibitors,” said Rahul Mehta, President, CMAI.

Welcoming implementation of GST, Mehta said the government needs to reduce the GST applicable on job work for garments and made-ups from 18 per cent to 5 per cent.

Garment exports to register 15-18 pc growth in FY 18

India’s garment exports are expected to register a 15-18 per cent growth in FY 18 as against US $17 billion registered last year, a senior government official said here.
“We have clocked 18 per cent growth in garment exports since January 2017 and we hope that similar trend may continue for remaining period this year. Last year our garment exports stood at US $17 billion,” Textile Commissioner Kavita Gupta told PTI.

According to a PTI report: She was speaking after inaugurating the 65th national garment fair here.

“Rebates on state levies have been introduced to encourage exports. There is an additional 10 per cent subsidy for the garment and made up segments, which means the home textile industry will effectively get 25 per cent capital investment subsidy on new machines they bring in, leading to efficiency and modernisation of the sector,” Gupta was further quoted by PTI as saying.
Subsidies have proved be very beneficial for the sector and led to increase in employment and attracted huge investments, she said.

The textile industry needs to utilize the various schemes launched by the government for the benefit of customers, the commissioner added.

The industry is looking at entering into CIS, Africa and Far East markets to increase garment exports, apart from our traditional markets of US and Europe, Gupta said.
To showcase business opportunity, Clothing Manufacturers Association of India (CMAI) has organised three-day national garment fair, the largest apparel trade show in Mumbai.
The B2B fair will be spread over approximately 6 lakh square feet, covering all the halls at the Bombay Exhibition Centre.

“We hope to generate 10 per cent increase in trade at Rs 750 crore from this fair, which will have 881 stalls displaying 1005 brands by 822 exhibitors,” CMAI President Rahul Mehta told PTI.

Whilst welcoming the GST, Mehta said the government needs to reduce the GST applicable on job work for garments and made ups from 18 per cent to 5 per cent.

The 18 per cent GST would be a major blow to the small manufacturers, most of whom follow the job work basis of manufacturing, he added.

Reputed exporters can give LUTs for IGST exemption

New Delhi, Jul 10 () Clearing the air with regard to exemption from payment of integrated GST by exporters, the finance ministry has said that big exporters with good track record can give letter of undertaking (LUT) to the customs.
On the other hand, small exporters would have to give bond to seek IGST exemption on export consignments.
After implementation of the Goods and Services Tax (GST), exporters raised the issue of lack of clarity on norms relating to submission of bonds or LUTs for clearance of export consignments and seek IGST exemption.
The Central Board of Excise and Customs (CBEC) in a notification has specified the conditions and safeguards for the entities that intend to supply goods or services for export without payment of integrated tax, for furnishing an LUT in place of a bond.
It said status holder exporters who have received inward forex remittances in excess of Rs 1 crore in the previous financial year can provide LUT to seek exemption.
Welcoming the move, the Federation of Indian Export Organisations (FIEO) said that the notification has resolved the confusion with regard to LUTs and bonds.
"Now it is clear that status holder exporters have to give LUT on their company's letter head to seek IGST exemption. And other exporters will give bond on non-judicial stamp paper," FIEO Director General Ajay Sahai said.
He added that bond with bank guarantee would be sought only from those exporters whose track record is not good.
Status holder exporters are those whose shipments were more than Rs 20 crore in the last three years.
Under the GST, an exporter can get exemption from payment of IGST if he/she submits bonds or LUTs.
In case the IGST has been paid, exporters can seek refund of the tax paid, according to a Customs circular on export procedure in the GST regime.
However, it was not clear like who would have to submit bonds and whether the bond should be accompanied by a bank guarantee.
IGST is levied on the supply of any goods and services in the course of inter-state trade or commerce. As per the IGST Act, export and import of goods and services are deemed to be a supply in the course of inter-state trade or commerce.

GST's impact on Special Economic Zones & Export Oriented Units to be a mixed bag

Anticipations from over a decade were put to rest on July 1 when India's biggest tax reform since independence, "Goods and Services Tax"(GST) was launched. With the introduction of GST, multitude of taxes have now been subsumed into one single tax, which will not only give a boost to the economy but will also bring about transparency and create self-disciplined tax ecosystem.

With an intent to give impetus to forex reserves of the country, Government has been regulating the export-import policy and has introduced various schemes for promoting exports of both goods and services. Special Economic Zones (SEZ) and Export Oriented Units (EOUs) schemes are also part of this export promotion strategy.

A SEZ is a specified demarcated duty-free territory, which for the purpose of trade operations is deemed to be considered outside the customs territory of India. Set up primarily to promote exports, even GST regime continues to incentivize SEZ units by extending due benefits for their authorized operations.

A SEZ is required to follow two separate set of compliances. Firstly compliances governed by the SEZ Act, 2005, such as submission of periodical progress reports and secondly, compliances required to be undertaken in terms of indirect tax laws. While the former are likely to continue without any major changes, the latter would now be modified in line with the GST law.

Till now GST regime has been a mixed bag for SEZ sector. On one hand, under GST regime, registration rules have mandated SEZ to take separate registration, since it is considered as a separate business vertical. Apparently, this will result into increased compliance and record maintenance burden on sectors having multiple SEZ units. On the other hand, industry has welcomed GST lawmaker's decision to keep all the supplies made to a SEZ as "zero rated".
While all export of goods/ services and supplies of goods/ services made to a SEZ are chargeable to IGST, however, these supplies shall be treated as zero-rated supplies under GST.

Resultantly, the suppliers making any supply to SEZ will have two options, either, not charge any Integrated GST (IGST) to SEZ and supply under a cover of bond/letter of undertaking and file refund claim of corresponding Input Tax Credit (ITCBSE -0.66 %); or charge IGST on its supply, pay it and then claim refund.

Also, unlike previous regime, the onus of filing refund has been shifted from SEZ units to the suppliers. Therefore, the SEZ units would not be required to go through the hassles of claiming refund for supplies which did not enjoy upfront exemption. However, there is no clarity for reverse charge transactions wherein, the liability to pay GST would be on the service recipient. In such case, it needs to be ascertained whether the SEZ unit is required to pay tax and then claim refund.

Further, any procurements (of raw material, goods or services) made by SEZ from outside India for its authorized operations have been exempted from Basic Customs Duty (BCD) & IGST both.

With regard to outward supply made by a SEZ unit, if a SEZ unit makes any domestic clearances (i.e. within India), the customer will be required to file a bill of entry (BoE), pay BCD and IGST on the transaction and report it as a part of his inward supply as imports. Alternatively, if SEZ make domestic clearances without the cover of BoE, such transactions will be required to be reported by SEZ as its outward supply.

In relation to the EOUs, all imports and domestic procurements are duty free. Under GST regime also it has been clarified that EOUs are allowed to import goods for the authorized operations without paying BCD. But such goods would suffer IGST and applicable cesses. In respect of indigenous procurements, the taxes so paid will be available as input tax credit (ITC) to EOUs and refund of the same can be claimed after exports.

Furthermore, to create a level playing field for domestic players, if an EOU makes domestic clearances, they will have to pay amount of BCD exemption benefit availed on imported inputs which were used in such domestic clearances.

It is therefore apparent that SEZ units would largely enjoy a status quo in GST as far as the various exemptions and benefits are concerned.

GST: Traders need to declare only GSTIN for export, import

NEW DELHI: After the implementation of the Goods and Services Tax, traders would have to declare only their GST Identification Number at the time of import or export, the commerce ministry said today.

Currently, all exporters and importers declare their IEC (import-export code).

With the implementation of the GST, it said GSTIN would be used for purposes of credit flow of IGST on import of goods; refund or rebate of IGST related to export.

Registration number under GST is GSTIN. It is a 15-digit alpha numeric number code with PAN prefixed by state code and suffixed by 3 digit details of business verticals of the PAN holder.

"It has been decided that importer/exporter would need to declare only GSTIN at the time of import and export of goods," the ministry said.


It also said that to promote ease of doing business, it has been decided to keep the identity of an entity uniform across the ministries and departments.

With the implementation of the GST, it said, PAN of an entity will be used for the purpose of IEC.

For the existing IEC holders, necessary changes in the system are being carried out by the commerce ministry so that their PAN become their IEC. Currently, PAN has no one to one correlation with IEC.
IEC is a 10 digit number and is mandatory for undertaking any import, export activities.

GST: Traders need to declare only GSTIN  for Export, Import

Gems & jewellery exports rise 11 % during Apri-May

India's gems and jewellery exports rose by over 11 per cent to USD 6.78 billion during the first two months of the current fiscal, largely driven by demand in major markets like the US.
In April-May last year, the sector's exports aggregated to USD 6.1 billion, according to the data from Gems and Jewellery Export Promotion Council (GJEPC).
The labour intensive gems and jewellery sector contribute about 14 per cent to the country's overall exports.
The rise in shipments was mainly supported by exports of silver jewellery, and gold medallions and coins.
Silver exports more than doubled to USD 1.51 billion during April-May 2017 from USD 674.14 million a year ago.
Similarly, shipments of gold medallions and coins registered a growth of about 50 per cent to USD 1 billion during the period under review.
Exports of cut and polished diamonds, coloured gem stones and rough diamonds also reported positive growth.
India's main export destinations include Europe, Japan, China and the US.
However, shipments of gold jewellery contracted 35.6 per cent to USD 542.15 million during April-May 2017.
According to the GJEPC data, imports of rough diamonds rose by about 6 per cent to USD 3.60 billion in April-May 2017.
Imports of gold bars, however, dipped by about 67.28 per cent to USD 300.22 million.

Gems & jewellery exports from India, Major Indian ports exporting Gems & jewellery

Gems & jewellery exports from India Major Indian ports exporting Gems & jewellery  ,  ,Indian Gems & jewellery exporters , Gems & jewellery exports of India

Indian spices export peaks to a new high

Indian spices and spice products surged to a record export worth of Rs.17664.61 crore ($ 2633.30 million) and a volume of 9,47,790 tonnes in 2016-17.
It registered an increase of 12 per cent in volume, nine per cent in rupee terms and six per cent in dollar terms from a year ago. In 2015-16 export came to 8,43,255 tonnes valued at Rs.16238.23 crore ($ 2482.83 million).
“India has surpassed all previous export records and has fulfilled the increasing international demand for its quality spices in the face of tough competition in global markets. More satisfying was the fact that the appreciable increase in exports came in the face of strict food safety regulations that now define and determine the international commodity trade.

Chilli continued to be the most demanded spice in 2016-17 with export of 4,00,250 tonnes amounting to Rs 5,070.75 crores, registering an increase of 15 per cent in volume and 27 per cent in value.

Cumin was the second-most exported spice, recording an increase of 22 per cent in volume and 28 per cent in value. A total volume of 1,19,000 tonnes of cumin valued at Rs.1963.20 crore was exported from India in 2016-17. The increase was largely due to the mandatory checks on cumin and its byproducts implemented by the Spices Board in the backdrop of rapid alerts from importing countries.

Increased global demand for turmeric, especially in the pharmaceutical sector, drove its exports to attain figures of 1,16,500 tonnes in volume and crossed Rs 1,241 crores in value terms in 2016-17.

The spice which showed the maximum increase as compared to the previous financial year was fennel, registering a 129 per cent increase in volume and 79 per cent in value. Export of garlic, nutmeg and mace and celery also increased

Resources:  economictimes.indiatimes.com

Indian Exporters of spices from India

Major Indian Ports Exporting spices products

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