Amravati, 9 Dec (KNN) The Andhra Pradesh Textile Federation is protesting against the proposed GST hike of 12% for the textile and apparel sector w.e.f 01.01.2022 on man-made synthetic fibre, manmade fabrics and apparel.
Industry all over India seeks flat 5% GST rate across the entire value chain to boost consumption which will trigger growth of the industry and more employment generation as the garment and other textile made up products are labour intensive.
In view of this a letter has been written by Federation of All India Textile Manufacturing and Trading Associations of Ludhiana to Parshottam Khodabhai Rupala, Minister of Fisheries, Animal Husbandry and Dairying also Member of Rajya Sabha, addressing the issue of inverted duty structure.
“We are sure that this uniform rate will improve the overall tax compliance and revenue collection will also increase substantially,” says senior officials of the federation.
The federation wants the GST council to review the decision and fix 5 per cent uniform GST rate across the entire value chain.
A separate letter has been forwarded to Finance Ministry for looking into the matter and consider recommending flat 5 per cent uniform GST rate across the entire value chain.
Prior to this, India’s largest garment hub, Tiruppur came to a standstill with owners of over 6,000 knitwear and garment and allied industries downing shutters and sitting on a hunger strike. They were demanding relief on rising cotton yarn prices for the last 10 months. The issue is so serious that owners agreed to collectively absorb a loss of around INR 120 crore on that day.
That is why the government decision to have a uniform GST at 12 per cent for the textile and apparel sector on man-made synthetic fibre, manmade fabrics and apparel has further raised pressure on the industry.
SOURCE: KNN Knowledge & News Network