In a report presented by a Parliamentary panel chaired by Kirit Somaiya, it is mentioned that the Textile Ministry should try to convince the Revenue Department and Finance Ministry to reconsider the overall structure of the Goods & Services Tax (GST) for the textile sector. It also suggested to increase anti-dumping duty in order to protect the domestic textile industry.
In its report, the panel has also reminded the Textile Ministry of the existing issues on GST liability on job work, issues relating to the credit transfer documents, inverted duties mechanism for man-made fibre, non-refund of ITC, lowering of GST for machinery used by MSME textile units, GST for weaving industry, etc.
The report also observed that the Finance Ministry only approved Rs 7,147.73 crore against the proposed outlay of Rs 10,109.05 crore as presented by the Textile Ministry. “The Secretary, Ministry of Textiles has deposed that though it appears that Budgeted Expenditure (B.E) 2018-19 which includes Cotton Corporation of India’s loss of Rs 921.23 crore is more than the B.E 2017-18 by Rs 921.23 crore, in reality, B.E 2018-19 is Rs 3 crore less than the B.E of 2017-18,” the Committee said in its report.
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The committee also reported that reduction in Budgeted Expenditure would result in the poor implementation of several schemes that the Ministry of Textiles is presently working on, especially in the field of unorganised sectors of handloom, handicrafts, power loom, wool and sericulture.
