Question : Status of Textile Exports


(a) whether huge decline in export of textiles and garment has been noticed this year in comparison to the year 2017 as per the data collected by Confederation of Indian Textile Industries (CITI);
(b) if so, the details thereof and the reasons therefor;
(c) whether there is need to make the refund of Integrated Goods and Services Tax (IGST) easier;
(d) if so, the steps taken by the Government in this direction;
(e) whether there is urgent need to provide urgent relief of minimum two per cent on the export of cotton yarn and under Merchandise Exports from India Scheme and Rebate of State Levies (RoSL) package for garments and cotton yarn for competition in national market; and
(f) if so, the details of the steps taken by the Government in this direction?

Answer given by the minister

THE MINISTER OF STATE FOR TEXTILES
(SHRI AJAY TAMTA)
(a) & (b): As per data of Directorate General of Commercial Intelligence and Statistics, exports of textile & apparel (including handicraft) have increased by 2.5% from US$ 28,656 mn during April to December 2017 to US$ 29,381 mn during April to December 2018.
(c) & (d): GST is far-reaching reform and refund of IGST has been simplified to a large extent. Government has taken various steps to further simplify the refund process. All documents/undertaking/statements, along with the claim of refund can be uploaded on the common portal by the applicant at the time of filing refund application. Statutory provision has been made to provisionally sanction 90% of the refund amount within 7 days in case of exports. To facilitate small exporters, a provision has been provided in the Central Goods and Services Tax Rules, 2017 that the shipping bill, filed by an exporter of goods, shall be deemed to be an application for refund of integrated tax paid on the goods exported out of India. Further, to reduce the pendency of refunds with regard to IGST paid on exports and Input Tax Credit (ITC) claims, Central Board of Indirect taxes and Customs has organised three editions of the Refund Fortnightly.
(e) & (f): Rebate of State Levies (RoSL) remits state taxes/ levies which are embedded in the cost of exports. Quantum of embedded taxes/ levies are examined by Government from time to time for revision required if any. As regards cotton yarn, export has increased by 21% during April-December 2018-19 as compared to previous period.

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