Textile industry leaders meet Finance Minister over GST issues

Textile industry leaders meet Finance Minister over GST issues

SURAT: Leaders from the textile sector met Union finance minister Piyush Goyal and finance secretary Hasmukh Adhia to discuss the issues related to the Goods and Service Tax (GST) on Tuesday.

A delegation led by Navsari MP C R Paatil, including textile industry leaders, met Goyal and put forth various demands related to the simplification of GST, refund of the Input Tax Credit (ITC) etc.

Since November-2017, more than 1 lakh power loom machines have been sold in scrap and weavers have been forced to reduce the production of man-made fabric (MMF) by operating their units in the single shift of eight hours. The textile processors, yarn spinners and the embroidery units are allowed to claim ITC refund, but when it comes to weaving industry, there is a clear discrimination by the central government.

According to power loom weavers, the average ITC refund amount per loom per year comes to around Rs 7,000. The city has 6 lakh power loom machines and total annual ITC refund amount is pegged at Rs 420 crore.

Leader of the textile traders Sanjay Saraogi said, “We have put forth demands including the refund of ITC, simplification of ITC 04 form, intrastate e-way bill exemption, transporters filling wrong information under part-b of the GST and traders being penalized etc. Both Goyalji and Adhiaji heard us well and they have promised to resolve the issues.”

President of South Gujarat Textile Processors Association (SGTPA) Jitu Vakharia said, “We met the finance secretary and urged him for the early payment of refund of ITC. The finance secretary has promised us to bring the issue in the next GST Council meeting.”

Source: https://timesofindia.indiatimes.com/city/surat/textile-industry-leaders-meet-fm-over-gst-issues/articleshow/64470817.cms

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