CMAI brings PwC, Wazir Advisors on board for GST representation

The Clothing Manufacturers Associations of India (CMAI) has roped in two agencies, PricewaterhouseCoopers (PwC) and Wazir Advisors to prepare a representation to be submitted to the Union government requesting that readymade garments be included under the 'Merit List' of Goods & Service Tax (GST). GST, expected to be introduced in April 2016, is anticipated in the range of 20 to 24 percent. Inclusion under 'Merit List' will entail lower tax on readymade garments.

In another development, CMAI President Rahul Mehta, who is also President of IAF, while addressing an interactive meeting of garment manufacturers organised by the Conciliation & Arbitration Sub-Committee of CMAI, said that the Payment Default Committee of the CMAI has succeeded in recovering Rs 400 crores in dues for its members from January 13, 2015 till date. During the last seven months of functioning of this committee, 35 percent of payment default complaints have been settled.

According to him, the present credit period of 90 to 120 days prevailing in the garment trade in India should be reduced to seven to 10 days. Such a late payment system only prevails in India. The ultimate aim of the industry should be to achieve a 'zero credit' system, he said. He also said that CMAI should get an opportunity to develop an international exhibition centre in Mumbai like Pragati Maidan in New Delhi.