Hyderabad, December 30, : , The Telangana government demanded that the Centre reconsider its decision to increase GST in textile and handloom sector.K.T., Telangana’s Industry Minister wrote a letter to Nirmala Sitharaman (Union Finance Minister).Rama Rao appealed to her to not bring this idea forward at the GST Council meeting, which she will chair on Friday.
According to him, the weavers community and the industry have protested repeatedly to demand that the Union government waive the 5% GST on handloom products.
Instead, the Centre plans to raise it to 12 percent starting January 1, 2022.This will be a devastating blow to the industry, and will result in thousands of job losses.
Handloom and textile are the two largest sectors in India.The Union government has yet to provide any relief for this sector, which is already suffering the most from Covid-19.
KTR, who is the minister, stated that the Centre should offer additional incentives and benefits to this sector in light of the present situation.
The GST increase will have an impact on approximately 80 to 85 per cent of handloom production.
The cost of yarn, raw materials, chemicals and packaging material, as well as transportation, have all increased significantly since the implementation of Covid.These costs are not the only ones.
The GST increase will also cause an additional 15-20% rise in production costs.
This would negatively impact the industry’s ability to continue its operations.
Many textile and apparel units could be shut down due to this.The Minister stated that 15 lakh handloom workers could lose their jobs due to GST.
He said, “This will place an additional burden upon the middle-income group which typically buys garments with a budget Rs 1000.”
KTR stated that the Central government had not fulfilled its promise to provide two crore jobs each year and must withdraw the decision of increasing the GST because it will impact the employment opportunities of millions of people working in the textiles, handlooms, and textiles sectors.
The Centre should extend its support to the textile and handloom sector in light of the Covid-19 virus.He said that the Centre was actually putting the death knell in the sector by increasing GST, which is extremely unacceptable.
The country experienced marginal growth in its sector due to policies implemented by the Central government, compared with smaller countries such as Bangladesh.KTR stated that there is tremendous potential for growth and that the increase in GST will impact international investment.
He said that farmers had already protested against the ill-conceived laws and they were now being reformed.The Minister urged the Centre not to take any further action to raise GST on textiles or handlooms.
Otherwise, weavers in this country would repeat the actions of their farmers brethren.
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