Union Budget: Weavers disappointed over no GST exemption for handlooms

Weavers, who were already in crisis due to lack of orders from the State government, had pinned their hopes on getting GST exemption in this budget.

Rajanna-Sircilla: Weavers in Sircilla, who have for long been demanding exemption from the Goods and Services Tax (GST) regime for handloom products and raw material, are now an unhappy lot as there was no mention at all of their demand in the union budget presented in the parliament on Tuesday.

Weavers, who were already in crisis due to lack of orders from the State government, had pinned their hopes on getting GST exemption in this budget. While a five percent GST is being imposed on cotton products and raw material, they have to pay 12 per cent GST on polyester. A five per cent tax is also being imposed on the sale of polyester products. Cotton and polyester are the main products being produced in Sircilla and other areas of the district. Except for government orders, polyester is a major product in Sircilla because of which local weavers were demanding for exemption from GST for a long time.

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Besides giving multiple representations to MPs and MLAs, they had also observed hunger strikes demanding the Centre to give exemption to handlooms from GST. Local MLA and former Minister KT Rama Rao too had appealed to the Centre for tax exemption to handlooms and ran a campaign as well. The previous BRS government and the current government also had requested the Centre, but apparently, the pleas have gone unheard.

Speaking to Telangana Today, a master weaver and Mutually Aided Cooperative Societies (MACS) general secretary Polu Shankar said they were hoping for GST exemption. However, the union budget had shattered their hopes. It was not proper to impose GST on handloom products which have no demand in the market. In the wake of an abnormal hike in material costs, weavers were finding it tough to produce cloth by operating units. How could they pay GST, he asked.

Advising the government to introduce a slab system in handlooms and textiles, he wanted the government to give exemption to the handloom sector by considering it as a cottage industry.

Setting up of a Mega Powerloom Cluster in Sircilla was another major demand of local weavers. KT Rama Rao had several times requested the Centre for a powerloom cluster, apart from asking local MP and union Minister of State for Home Bandi Sanjay Kumar to take the initiative for sanction of the cluster. Transport and BC Welfare Minister Ponnam Prabhakar too had wrote to the Centre on this.

However, the budget has no mention of the powerloom cluster either.