India-based Export Promotion Council for Handicrafts (EPCH), an apex organization of trade and industry for promotion of handicrafts, has been performing multifarious activities to ensure the overall growth of handicrafts. These activities cover areas like developing awareness amongst producers and exporters for increasing exports, providing support for product development, technological upgradation, design development, creation of infrastructure at different craft clusters.
Now, in order to educate the exporters about the implication of the GST on handicrafts sector and also how to migrate to the new tax regime, the Council is holding a series of seminars in various craft clusters like Jaipur, Jodhpur, Chennai, New Delhi, Saharanpur, Moradabad, Mumbai, Kolkata, Bangalore and Agra.
EPCH in association with Handicrafts Exporters Association organized the awareness seminar in Delhi on “Goods & Services Tax (GST) – Way Forward recently.
Rakesh Kumar, Executive Director, EPCH, C.R. Rai, Chairman, Handicraft Exporters Association, Sagar Mehta, Vice Chairman – EPCH and other members of the Committee of Administration of EPCH were also present at the event. Participants were informed about the procedure and documentation for GST and addressed various queries raised by the exporters on the matter which included stock in hand, job work, samples for export, intermediary services and many other.
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Introduction of Goods and Services Tax (GST) is a significant step in the reform of indirect taxation in India, said Kumar. He further said, the objective of these seminars is to clarify the apprehensions of the handicraft exporters about implications of GST.
It may be mentioned here that the excise duty on handicrafts products was exempted and under VAT laws of various states, and handicrafts are placed in Schedule 1 which covers the exempted goods. Through the latest notification, the GST rates have been announced at 4 digit HS code level and most of the handicrafts items falls under 12 per cent, 18 per cent & 28 per cent GST rates, however handicrafts items are classified at 8 digit level.
The Council in its representation has requested for all artisans to be completely exempted from GST as was in the past, so that onus of paying GST under reverse charge is not applicable on the exporters. The calculation of duty drawback rates under the new GST regime to be simplified has also been requested.
