Commercial Tax Commissioner asks for report detailing GST losses in the textile sector

By

Isabelle Crossley

Published
Feb 6, 2018

Following months of back and forth between the GST Council and disgruntled textile manufacturers over Goods and Services Tax rates on fabric, the Commercial Tax Commissioner, P D Vaghela has asked leaders of Surat’s man-made fabric (MMF) industry to put together a report.

On February 5 in Ahmedabad, Vaghela met with many from Surat’s textile industry including the Federation of Indian Art Silk Weaving Industry (FIASWI), Southern Gujarat Chamber of Commerce and Industry (SGCCI), and individuals from the power loom weaving sector. Those in the industry requested that the state government give yarn exemption from the state’s e-way bill system to allow for freedom of movement.

Following this meeting, Vaghela asked leaders of the Surat textile industry to properly set out their list of demands in a report that will also specify losses incurred by the textile sector as a result of the GST’s implementation last July. The report will then be reviewed by the GST Council who will decide how to proceed.

Speaking after Monday’s meeting, FIASWI Chairman Bharat Gandhi said: “The commercial tax commissioner heard the delegation members patiently and assured all possible assistance from the state government in resolving the issues related to e-way bill and GST. We have been asked to submit a detailed report on the losses and other issues to the government and the finance ministry for consideration in the upcoming GST Council meeting. The industry leaders have decided to wait for the GST Council meeting before deciding on their next course of action.”

The planned report could therefore make some headway towards reconciling the textile industry with the GST but it depends on how the GST Council respond.