FIASWI and power loom weavers oppose possible GST rate change
today Jun 28, 2019
India’s power loom weavers and business owners are against a possible government change to current goods and services tax rates for the sector, according to the Federation of Indian Art Silk Weaving Industry.
The FIASWI has written to the Minister of Finance Nirmala Sitharaman to say that changing the current GST rates for the power loom sector would negatively affect the industry, TNN reported.
India’s largest man-made fabric centre is situated in Surat and power loom weavers, represented by FIASWI, believe that the government is considering revising the current GST rate for power loom trading from its current rate of five percent and that this would negatively affect their business.
FIASWI also recently requested that the Ministry of Textiles expedite financial assistance to weaving units in Surat as part of its Technological Upgradation Fund Scheme, the Financial Express reported.
“More than 1,500 such applications are pending to avail support from TUFS,” FIASWI’s chairman Bharat Gandhi told the Financial Express.
“Delay in release of funds under TUFS is hampering expansion plans of these units, which could generate thousands of jobs.”
The power loom sector hopes for more government assistance and a stable tax rate. Many power loom manufacturers are small-scale businesses and the government has said that it aims to increase both micro, small, and medium sized enterprises and increase domestic production, especially of textiles.
Power loom weavers hope that the government’s handling of GST rates will reflect this.
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