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Non-refund of ROSL (Rebate of State Levies) since June 2017, GST and Duty Drawback rate have resulted in working capital crunch, say knitwear exporters in Tirupur, urging the government to expedite refund of pending claims.
Explaining their plight, garment exporters in the knitwear cluster appealed to the Union Finance Minister Arun Jaitley to intervene and clear their pending claims, take steps to ease the filing of GST returns online and release system-based refund to avoid hardship in manual filing of the GST returns.
V Sathyabama, Member of Parliament, Tirupur constituency, who took up the matter with the Finance Minister said the MSME units in Tirupur were choking for want of working capital.
This cash crunch situation did not permit them to take fresh export orders, as they are not confident of executing them within the specified time at competitive rates, she said.
Classification of units
An even more disturbing issue is the classification of many of these units as non-performing ones by banks.
“The non-repayment of bank dues is not the fault of the MSMEs. Had they received the pending refund, they would have complied and met the demands of the banks,” she said and pointed out that the allotment of ₹6,000-crore package for garment sector had not really percolated to the MSMEs.
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