The textile association finally chose to get back to their work after warning the government by replying their angst through vote banks.The union finance minister Arun Jaitley clearly denied the exemption of textiles from 5 percent duty of GST due to some other credit input issues.
The finance minister cleared that this will make disruption in the domestic industrial input tax credit chain and will the imported textile cheaper. Eventually creating a more tough situation for the domestic manufacturers. The lead person of the association mentioned that the GST Council meet gave them satisfaction in this matter however the finance minister rejected the plea of exemption.
A known person in the association stated that yarns and fibres are no bone of contention for the industry but the other jobs related to fabrics, colouring and processing business will be ended if the current implementation carries on. One imminent personality mentioned that the 5 percent GST must be taken back but it was equally opposed by the government saying that the services must be under the GST ambit to safeguard other provisions.
Read Also: 5 Misconceptions About GST Which Everyone Needs to Understand
In another series of issues, the congress man started a discussion in the state assembly upon the inclusion of hand-looms into the GST structure. The minister mentioned that the inclusion of hand-looms in GST will be affecting hand-loom sector badly. Every other minister was against this decision and it has been seen that the issue will be soon discussed accordingly with apex authorities.
It is speculated that an overall 5 thousand crore business has been disrupted due to this GST rate issue. Also, the matter has stuck into the old stock as to how this stock can be cleared. The textile industries have been hit hard due to GST as it will be levied at 18 percent straight to every dealer in the chain.
