Federation of Indian Export Organisations (FIEO) has proposed the Government to launch the ‘e-wallet’ facility for the exporters of the country. The association believes that this will improve cash flow in the economy.
E-wallet, a running account cum an open, unsettled and revolving credit facility, can be used by both the buyer and the seller. If implemented, the e-wallets will resolve the liquidity problem for the exporters, states FIEO.
The facility will enable a buyer to continuously procure goods and services up to the (financial) limit agreed by the seller. This will help avoid delayed payments or accounting flaws.
“E-wallets will definitely be a major advantage to the industry as it will solve the ‘cash’ issue for the exporters. If you have a small business, cash is the king. E-wallets can help in making end-to-end transactions digitally. However, it is uncertain when the idea of e-wallets will become a reality,” Kulbir Singh Virk, Director, Virk India told Apparel Resources.
Other than this, FIEO has also asked the GST Council to fix 0% or 5% GST on sale/transfer of scrips.
“The announcement of 5% GST on job work has brought peer pressure on apparel and carpet sectors.
However, the GST will give a competitive edge to Indian apparel and textile industry in both global and domestic markets. It will also bring more growth opportunities in the coming years,” reportedly said Ganesh Kumar Gupta, President, FIEO.
