Drop plans to hike GST on garment products, Tirupur assn tells Centre, Retail News, ET Retail
Although attending a GST assembly headed by Union finance minister Nirmala Sitharaman in New Delhi on Tuesday night, Teama president M P Muthurathinam said the Centre’s shift to boost the GST to 12% from 5% on textile apparels from January would have adverse affect on the marketplace, which is now reeling under enter selling price rise.
Stating that Tirupur was home to extra than 12,500 knitwear, garment and allied units, which make use of additional than 10 lakh folks, he explained the pandemic and the lockdown had affected them, specially the Micro, Small and Medium Enterprises. He explained the units in Tirupur accounted for exports to the tune of $4 billion . In the domestic market place, he reported, they do business worthy of about $2.80 billion.
“The price tag of raw components for attire manufacturing have increased over the past 12 months. The price of raw cotton on your own has shot up by Rs 130 for every kg, in comparison to previous yr. Labour and container shortage include to their woes.”
He explained the textile units were dealing with extreme competition from countries these kinds of as China, Bangladesh and Vietnam in the export business front. “Amid these worries, the whole textile sector is dependent on the domestic current market for sustaining the business. If the GST were to be increased to 12%, it will insert to the load of the textile units, several of which may possibly be pressured to shut down.”
When Sitharaman has promised to search into the concern, Teama associates are preparing to meet up with the condition finance minister, P T R Palanivel Thiagarajan, and chief minister M K Stalin to put forth a ask for in this regard at the GST council conference. They also sought ban or regulation on the export of raw cotton and yarn.