Withdraw GST on handloom sector, Puvvada demands Centre

Expressing concern over imposition of GST on handloom garments, he said it was not the right move in the context of making garments.

Khammam: Transport Minister Puvvada Ajay Kumar has demanded the Centre to withdraw the five percent GST imposed on handloom products.

Expressing concern over imposition of GST on handloom garments, he said it was not the right move in the context of making garments, which had become difficult due to the increase in the prices of dyes, yarn and other raw materials.

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In a statement here on Saturday, Ajay Kumar said the State government had given high priority to the handloom sector and increased employment through Bathukamma sarees, with the result being that weavers in the State were settling down now.

But GST on handloom products would impose a financial burden on them and make even the small amount of income they were earning would be lost. Due to the neglect of the handloom industry by the Central government the industry was suffering.

Adding to their woes, the Centre was now imposing GST. The BJP government at the Centre lacked minimum concern towards handloom workers. Although there was a clear provision that no tax burden should be placed on the handloom sector, the Centre has not exempted the sector from GST, Ajay Kumar said.

He reminded that in 2017, the central government had exempted 149 industries from GST, which did not include the handloom sector. If GST was not withdrawn, the survival of the handloom sector would become difficult.

The minister informed that two years ago, the price of a kilogram of yarn was Rs.3000 , but now it has increased to Rs.5000, and the prices of warp, zari and dyes have also increased. However, the rate of sarees has not increased to that extent.

Hence, the Central government should respond positively to the issue and exempt the handloom sector from GST, Ajay Kumar demanded.