Chamber of Industrial and Commercial Undertakings (CICU), Ludhiana: Textile industry seeks rollback of GST rates hike
24 November 2021, Mumbai:
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 materials 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.”
BAP leaders postpone protest outside PM’s residence
Earlier, a group of industrialists under the banner of Bhartiya Aarthik Party (BAP), had announced a protest outside the house of Prime Minister (PM) Narendra Modi in Delhi on November 25.
The national president of the party, Tarun Jain Bawa, stated that the agitation has been postponed for now as officials from the PM office have invited them for discussing the problems on Wednesday. HT
(The news article has not been edited by DFU Publications staff)
Dear Reader, we at DFU Publications are committed to providing the latest news updates on trade development and insights, to keep our readers informed. Stay tuned. Subscribe to our newsletter.