Apparel Online India Magazine December 1st Issue 2018 | Page 36

INDUSTRY LIVE THE LATEST NEWS HAVE YOUR SAY For the latest news on apparel and textile, make sure that you visit https://apparelresources.com/top-news/ Write to Apparel Resources, B-32, South Extension-1, New Delhi (110049), India or email: [email protected] FINALLY DECODED! HOW BUYING AGENTS CAN MANAGE ‘COMPLICATED ISSUE’ OF GST E ven after 17 months’ of GST (Goods and Services tax) implementation, many stakeholders of the textile and apparel industry are struggling about the new taxation policy and allied processes. Buying agents are also one of them as they too fight over GST issues. Surprisingly few buying agents are paying 18 per cent GST on the commission they are receiving while many are not. Even some buying agents claim that they don’t come under GST as they are service providers and bring foreign currency to the country. To create awareness and spread clarity on this issue, various organisations are working collectively. Apparel Online talked to a number of buying agents and experts on this issue to decode how the former can manage GST.  Lokesh Parashar, Director, Adkindia LLC, Delhi who is also the flag-bearer of Federation of Buying Agents (FBA) shared that one of the major reasons for the problem faced by buying agents is that the Government was not recognising them as a separate body. However, now SEPC (Services Export Promotion Council) has added a new category of ‘Others’ wherein buying agents are recognised as service exporters. “I will suggest that every buying agent should get registered under SEPC as service providers and avail exemption from GST,” he insisted. “A writ petition is pending in the Gujarat High Court for GST reversal. The case is under hearing as of now and chances are that the buying agents may get back whatever GST has been paid so far. FBA members are also a party in this case.” – Ajay Abrol, UA Consultants, Faridabad and Secretary, FBA SEPC, set by the Ministry of Commerce & Industry, Government of India, is an apex trade body which facilitates service exporters.  Parashar further announced that as a benefit of being registered service exporters, one can avail 5 per cent SEIS (Service Export from India Scheme) incentive from the Government. All members need to come forward and avail this benefit and FBA will help its members to get the same.  Lokesh further informed that majority of buying agents are unaware of the exact details and the system and that how they have to proceed as far as GST is concerned. FBA – a platform created for the buying agents, have taken initiatives in this regard. “We are organising seminars in which subject experts guide the buying agents on GST and allied issues. FBA have had meetings with senior Government officials to convey them that we are generating foreign currency for our country and explaining the kind of support the Government can offer to grow the business multifold. We are in process to create a desk where buying agents can seek any kind of help on regular basis.”  Many buying agents are not aware of the SEPC and benefits accrued from its membership. After FBA awareness, some such agents are now going to avail it so that they can get further benefits. 36 Apparel Online India | DECEMBER 1-15, 2018 | www.apparelresources.com Lokesh Parashar, Director, Adkindia LLC, Delhi and flag-bearer of Federation of Buying Agents (FBA) Rajesh Bhatia, CEO, Nexus International, Faridabad, also a buying agent told, “It seems really beneficial and I have made my mind to explore SEPC membership as FBA team informed me.”  “There are some small but very important points which are not known by many buying agents like they should use RBI’s P006 code which is for receiving the service fee (commission) as service exporters come under this code only”, Ajay Abrol, UA Consultants, Faridabad and Secretary, FBA, told Apparel Online. Rajat Mangla, CA and Partner of Shyam Sunder Mangla & Co. shared his expert opinion, “Looking at the law,