Union Government addresses MMF sector's GST issues

By

Isabelle Crossley

Published
Jul 20, 2018

On July 19, the central government announced that it may act in favour of the manmade fabric (MMF) sector to address its issues with the goods and services tax (GST) and will make a decision by July 21.

On July 19, a delegation of New Delhi’s textile sector led by Navsari MP CR Paatil met with the Union Textile minister Smriti Irani after Irani summoned the group to discuss its issues relating to the GST. After an afternoon discussion which also included the Secretary of Financee, Hasmukh Adhia and the Southern Gujarat Chamber of Commerce and Industry (SGCCI), it was decided that the government would act to address the MMF sector’s needs.

Some of the demands from the sector include the powerloom weaving sector’s call for a refund of accumulated input tax credit (ITC) and the textile traders’ call for a simplification of GST law to allow for relief under the e-way bill and to tackle the problems faced by the sector when filing the ITC-04 form. 

“The meeting was held in positive atmosphere and we are hopeful that the central government will take measures to resolve our ITC refund issue on July 21,” Ashish Gujarati, who was present in the meeting as a leader of the powerloom weaving industry, told TNN. “The ITC refund will give a new lease of life to the dying powerloom sector.” 

The President of the SGCCI, Hetal Mehta, also commented on the meeting and said: “There is some good news waiting for city’s textile sector. This time the government is very proactive towards our demands related to GST, especially ITC refund.”