With the Union government recently increasing goods and services tax (GST) on garments and textiles from 5% to 12%, the Chamber of Industrial and Commercial Undertakings (CICU) has written to Union finance minister Nirmala Sitharaman seeking a rollback of the decision.
The letter stated that the textile and garment industry is already struggling for survival amid the pandemic, and this move by the government will push it into a deeper crisis. The industrialists rued that this will impact business at large as prices of woven and knitted fabrics, knitted garments, textile garments etc will increase.
Also, it will adversely impact export, as the sector will not be able to compete at the international market and lead to rampant tax evasion, stated industrialists.
CICU president Upkar Singh Ahuja said the industry had also opposed an increase in the GST rate, but the government notified it, ignoring their needs and demand. “We have written to Sitharaman to roll back the order, failing which the industry, especially the small units, will collapse,” Ahuja said. The industrialists stated that rising prices of raw material have already been taking a toll on the business.
Knitwear and Textile Club president Vinod Thapar said, “Rather than helping the industry by bringing down the prices, the government has added to our woes. The industry will not be able to survive for long under these circumstances and this hike will further encourage tax evasion. The tax rate should be reduced to 5% to save the industry.”
{{/usCountry}}Knitwear and Textile Club president Vinod Thapar said, “Rather than helping the industry by bringing down the prices, the government has added to our woes. The industry will not be able to survive for long under these circumstances and this hike will further encourage tax evasion. The tax rate should be reduced to 5% to save the industry.”
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