According to the trade body, handmade manufacturers and other floor coverings have been adversely impacted with the levy of 18 percent GST on job works and 12 percent on the sale and purchase of handmade goods. Nearly 20 lakh workers and their families are suffering from the new Goods and Services Tax Regime.
Turnover of Handmade Carpet Manufacturers and floor coverings is nearly Rs 1000 crore, production of these units have been influenced due to the new regime. The goods and services tax is proving to be harmful to traditional business units as it will make them do all sorts of
The Carpet Export Promotion Council (CEPC) has gathered information from taking opinions and feedback from several handmade manufacturers and exporters associations across the globe. In an official statement, CPEC claimed that nearly 5000 units are not- functioning and in the boundary of closure.
According to Council said, “No new orders are being executed and weaving has almost come to a complete closure for new orders. The old orders and old stock is also not moving out of fear of imposition of the tax, not getting increased price from buyers due to old contracts and worry about losing money.”
In the views of CPEC, Indian Carpet manufacturers are not able to compete with International Market whereas other countries such as China and Turkey are taking the advantage of the situation and occupied the space left by the Indian handmade carpets. By adding that, “And machine-made carpets will quickly fill the lower end of the market and will be imported heavily in India and will add to the imbalance in the foreign exchange and balance of payment.”
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It is claimed that order of Rs 2,000 crore have been cancelled by importers as they denied to pay the additional cost. According to CPEC, “This has affected the livelihood of around 20 lakh of workers and their families in the carpet producing belts.”
Carpet Producing Belt families are influenced with the implementation of Goods and Services Tax (GST) and generally belong from four states- Jammu & Kashmir, Rajasthan, Uttar Pradesh and Haryana.
