Page 5 - Craftcil Feb 2024

N ews highlights

EPCH delegation raises 45 days payment of goods supplied by MSMEs rule,

during meeting with Union Finance Minister

EPCH delegation led by Mr. Syed Zafar Islam, National Spokesperson, BJP, with Smt. Nirmala Sitharaman, Union Finance Minister, Govt. of India along with
Dr. Rakesh Kumar, Chairman IEML & Chief Mentor, EPCH; and Mr. Avadesh Aggarwal, General Secretary, Moradabad Handicrafts Exporters Association

New Delhi: 15th February'2024 - A delegation of handicraft exporters led by Mr. Syed Zafar Islam, National Spokesperson, BJP,
met Smt. Nirmala Sitharaman, Union Finance Minister, Govt. of India, in the presence of Dr. Rakesh Kumar, Chairman IEML & Chief
Mentor, EPCH; and Mr. Avadesh Aggarwal, General Secretary, Moradabad Handicrafts Exporters Association (MHEA) raised an important
issue of 45 days payment of goods supplied by MSMEs which is affecting MSMEs including Handicrafts exporters.
Dr. Rakesh Kumar, Chairman IEML & Chief Mentor, EPCH, shared that although the decision is intended to support MSMEs, the
initial response is different. Making payments to MSMEs within 45 days is challenging for the handicrafts industry, wherein the credit
periods often last 180 days. For handicraft export shipments, it usually takes 90 days to arrive at destination port and further 90 days
for payment realisation. EPCH has been representing this issue for a very long time at various forum, the linking of 45 days MSME
clause with Income Tax provision would result in non availing of deduction in expenditure by the MSME exporter thus increasing their
tax liability. Hence, relief was sought for the sector.
Mr. Avadesh Aggarwal, General Secretary, Moradabad Handicrafts Exporters Association (MHEA) raised an issue of amendment in
GST portal regarding E-way bill generation wherein traders will not be able to generate E-way bill until the goods are inward to them,
by this GST evasion can be prevented. He highlighted other issues such as inclusion of some items like electrical fittings in a duty free
import of essential embellishment, trimmings, tools and consumables provision which is offered to the handicrafts Sector, Production
linked incentive scheme for handicrafts sector, relook at the RoDTEP rates, etc.
The Hon'ble Minister gave a patient hearing to the issues raised and assured that they will be looked into.

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