GST revision on handlooms will be death blow to industry: KTR to Centre
Hyderabad: Handlooms and Industries Minister K T Rama Rao has appealed to the Central government to withdraw its plans to revise GST on textiles and handlooms from 5 per cent to 12 per cent with effect from January 1, 2022.
In a letter to Union Textiles Minister Piyush Goyal on Sunday, Rama Rao said that in the past two years, textiles and particularly the handlooms sector, was going through a tough phase following the Covid pandemic. “At this juncture, revising the GST from the current 5 per cent to 12 per cent would only be a death blow to the industry,” he said in the letter.
Pointing out that after agriculture sector, textiles and handlooms sector provide the highest employment in the country, the Minister said considering the current scenario, the need of the hour was to extend additional advantages and incentives to the sector, he said, adding: “The decision to increase GST on textiles and handlooms is not wise,”
Never in the country’s history were taxes levied on handlooms and the Centre’s moves to levy 5 per cent tax itself was strongly opposed by the textiles and handlooms sector across the country, he recalled. “The current decision to impose additional seven per cent GST on handlooms would leave the sector crippled. Telangana produces world-class handlooms and weavers are a worried lot to the Centre’s decision to increase GST,” Rama Rao said.
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