The revised GST rates on yarn has made the power loom weavers and textile traders in Gujarat expressed their unhappiness over the decisions in the recent meeting of GST though many textile associations are satisfied with the decision as most of their issues are resolved, minister of state for road transport and highways, shipping, chemical and fertilizers Mansukh Mandaviya said.
All 12 demands from three segments of the textile sector were accepted by the council, Mandaviya said in Surat recently. The GST Council reduced the GST on yarn from 18 to 12 per cent, which will result in less accumulation of input tax credit (ITC) by weavers. Cent per cent credit is now available on duty payment on input stock, he added.
However, The Federation of Surat Textile Traders’ Association (FOSTTA) and the Federation of Gujarat Weavers’ Association (FOGWA) have jointly decided not to celebrate the Hindu festival of Diwali. Many textile markets in Surat will not be illuminated as a mark of protest against the central government, according to official sources.
From unfinished fabrics to finished fabrics saris and dress material, textile pass through at least 15 stages and at 5 per cent GST is charged at each stage. Traders’ demand for a single GST at the final stage has not been accepted, according to FOSTTA president, Manoj Agarwal. Also, the composite scheme of Rs 1 crore and the quarterly return for those having turnover up to Rs 1.5 crore is not of any use to the traders, he added.
– Apparel and Textile News, Apparel Talk, Indian Apparel
