Apparel Export Promotion Council has recently congratulated Union Minister for Finance and Corporate Affairs Nirmala Sitharaman on her maiden Union Budget 2019-20. AEPC thanked Government of India for the reduction in corporate tax to 25 per cent for companies with annual turnover up to Rs. 400 cr and the proposed reduction in customs duty on wool fibres.
It also welcomed the procedural simplifications proposed – like Interchangeability of PAN and Aadhaar, simplified single monthly return, fully automated GST refund module and the electronic invoice system. The industry hopes to witness a reduction in the compliance burden following these measures.
The industry today is faced with sever working capital shortage, due to long pending ROSL dues, difficulties in getting bank credits and GST refund blockages. It hopes that the Rs. 70,000 cr proposed to be provided to PSBs will ease up the working capital credit flows. The industry is also waiting for the Rebate of State and Central Taxes and Levies (ROSCTL) scheme to be operationalized. AEPC is hoping that the scheme gets enough funding for a smooth roll out and faster clearance of all past dues.