ERODE: POWERLOOM weavers have requested the state government for the speedy payment of  Goods and Services Tax (GST) refund amount which has been allegedly withheld for the past four months to the weavers who produce fabrics with man-made fibre.

The weavers said about one lakh powerlooms from Erode, Tirupur, Coimbatore, Namakkal and Salem districts have to be paid nearly Rs 100 crore. B Kandavel, organising secretary of the Tamilnadu Federation of Powerlooms Associations, said, “About 2 lakh powerlooms in Erode, Salem, Namakkal, Coimbatore and Tirupur districts produce fabrics using man-made fibre. About 1 crore meter of fabric is produced daily. Its value is `35 crore. These fabrics are woven on power looms and then sent to the northern states.”

“Traders from other states will only place orders. We used to buy synthetic fibre known as man-made fibre and engage in fabric production. This man-made fibre is subject to 12% GST and of this 7% is refunded to the weavers. This 7% refund amount is given by the central and state governments,” he added.

Further, he said, “Out of the above two-lakh powerlooms, one lakh powerlooms are provided the refund by the central government and another one lakh powerlooms get it from the state government. As for the Tamil Nadu government, it is provided by the Commercial Tax Department (CTD).  The refund payable to the weavers by the CTD is pending from November 2023. Weavers have applied for the refund of nearly `100 crore due to one lakh powerlooms. The TN government should take this into consideration and take steps to get the refund to the weavers quickly,” he added.

A powerloom weaver from Erode, who did not want to reveal his name, said, “The refund is only part of our capital. It can be reinvested only if it is available at the right time. The CM should take steps in this regard.” A CTD officer in Erode said, “We have 60 days to return the refund amount to every weaver. We are providing this on a priority basis.”

Source: The New Indian Express