Telangana Industries Minister KT Rama Rao asked the Union government to refuse the proposed plan of GST hike from 5 to 12 per cent upon the garments and fabrics dated 1st Jan 2022. In the letter to Central textiles, Rama Rao mentioned that for the former 2 years the handloom sector passes through the tough path because of covid.
“At this juncture, revising the GST (rates) from the current 5 per cent to 12 per cent would serve a death blow to the industry, Rama Rao added.”
The textiles, as well as the handlooms sector, went with the highest employment in the country after the agriculture segment. In the present time, the urgent need was to prolong the furthermore benefits and incentives for the sector and adding the GST rates on the textile sector was not a recognized decision.
“The current decision to impose an additional seven per cent GST on the handlooms would leave the sector crippled. Telangana produces world-class handlooms and weavers are worried due to the central government’s decision to hike GST rates, Telangana Minister commented.”
Rao does not want that there will be any surge in the GST textile products or the same GST rate i.e 5% would be retained on the handloom at least. The important thought beneath the asked surge is to amend the problem of the inverted duty system imposed on the small textile value chain which has been talked, earlier in the 45th GST council meet.
Furthermore, the GST rate was 5% for the sale value of Rs 1000 per piece and now the increased GST has undergone 12%. Selling the same textile item at a higher GST rate will not give a feeling of satisfaction for the customer also.
