Textile Sector MSMEs urge Centre to put sector under lowest slab of GST

Tirupur, Jan 11 (KNN) Tirupur Exporters’ Association (TEA) have urged the Textile Ministry to put the sector under lowest slab of Goods and Services Tax (GST).

TEA has appealed Union Textiles Minister Smriti Irani that the entire textile sector may be placed in the lowest slab of the GST so that industry can absorb the levy without any significant impact on the business.

According to TEA there is an urgent need to address this issue so as to reinstate climate of investment in micro and small industries.

The Association said that successful textile clusters may be empowered with adequate industry infrastructure facilities.

The benefits announced in the special package in June 2016 including rebate on state levies, EPF benefits for new employment are yet to be passed on to the exporters.

It also said that there should be no gap between government and industry. Focused and dedicated agency should be formed specifically for the knitwear sector which can serve as a catalyst for rapid growth of this industry segment.

Government should consider their appeal because Textile industry has contribution of about 4% to the country’s GDP, 14% of the industrial production and 17% to export earnings. (KNN/RAS)