MUMBAI(Commoditiescontrol): All India Cotton Ginners Association members requested ginners and ginners associations from all across the country to call off the strike in agitation against Reverse Charge Mechanism(RCM).
In a telephonic conversation with Mr Dilip Patel and Mr Saurin Parikh, conveners of the All India Cotton Ginners Association confirmed that they were not in a support to hold a strike in protest against the Reverse Charge Mechanism(RCM).
Both confirmed that the issues faced by ginners was not convincing enough to hold a strike and cripple the trading activity of the cotton industry.
Firstly, they have discussed the refund issue with the Dr P D Vaghela, Commerce Commissioner of Gujarat and other government officials who have promised refund to GST paid in the form of Input Tax Credit(ITC) to be given within 7 to 10 day period. If a merchant exports cotton during the month of November or even on November 30, then they will receive the return on GST paid within 7 to 10 days from the date of filing the return.
Secondly, the export share of Indian cotton is around 15 percent of the total season’s production and there were various exporters willing to purchase fully pressed cotton at price which includes the 5 percent GST from ginners who were unable to claim set off after RCM on exporters was implemented at 0.01 percent.
Thirdly, if RCM is withdrawn then the costing of cotton seed oil cake would increase Rs 85/quintal and this would cripple around about 3,000 oil mill standalone factories in the country.
The commissioner has also promised to address this issue after the completion of model code conduct of the Gujarat election.
We will provide further updates as new information comes to light.
(By Commoditiescontrol Bureau; +91-22-40015534)
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