Tamil Nadu powerloom industry seek GST exemption

The Tamil Nadu Powerloom Federation Limited has urged the state chief minister EK Palaniswami to request the Centre to exempt weaving industry from the Goods and Services Tax (GST). The weaving sector comprises small and tiny weavers and bringing them under the tax net for the first time would jeopardise the entire textile industry, the Federation said.

So far, no central excise, sales tax or service tax was levied on the weaving industry, as the yarn used in the weaving process was already taxed. Further, tax was again paid for the fabric at the processing stage, Federation president MS Mathivanan told the chief minister.

The Central government would not suffer much loss by giving exemption to the weaving industry, as the tax levied on the yarn and weaving is to be credited when it was processed, said Mathivanan, who led the delegation comprising representatives of Erode and Karur cloth merchants’ associations, and weaving associations from several places across the state.

Since majority of the weavers were illiterate, they would not be able to register and furnish returns online, as required under the GST. And without being registered under the Act, they would not be able to either buy yarn from the mills or sell fabric in the market, the delegation said.

The chief minister assured the delegation of his full support and told that he would send handlooms minister OS Manian and senior officials to New Delhi to apprise the situation to the Union finance minister Arun Jaitley, the Federation said in a statement.