Textile MSMEs demand redressal of GST issues, lowering of tax rate and incentives in budget wishlist

New Delhi, Jan 24 (KNN) In the aftermath of the continuous pressure on exports across various segments in the past, the textile sector which is largely dominated by the small and medium enterprises, has sought certain concrete measures to boost exports.

The Confederation of Indian Textile Industry in its memorandum submitted to the Finance Minister Arun Jaitley, demanded redressal of GST issues, lowering of tax rate and incentives. Most of these issues related to facilitating the manufacturing and exports.

The major demands raised by the association include refund of input tax credit at fabric stage as it is consumed by general public refund of excess or accumulated input tax credit (ITC) of job workers as all work is done by them and this would help industry to become more competitive.

Exempt raw cotton from 5% GST when purchased directly from the farmers under the reverse or forward charge mechanism so as to reduce blockage of working capital at the time of procurement of inputs.

Reduction of GST on man - fibers from 18% to 12% as it provides more jobs and produce higher value addition.

Bring all petroleum products under the GST net so as to reduce the production cost by allowing seamless flow of input tax credit.

Abolition of custom duty on imported wool fiber textile Upgradation Fund Scheme subsidy to clear the arrears and to meet the committed liability for 2018-19. (KNN/YV)