Raja M Shanmugam, President of TEA said the notification exempting from payment of IGST while importing machinery under EPCG scheme is valid till September 30, 2018 only and, in case, if it is not extended, exporting units would have to pay IGST upfront which is an additional burden to the units. He also mentioned that the concern is the upfront payment of IGST which will affect the working capital of the exporting units as the GST refund through ITC refund route will take some time to receive. He noted that as more than 80 per cent of the exporting units are MSMEs, they cannot meet their financial requirements and this ultimately affects their day-to-day operations.

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