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Tiruppur garment units observe strike against 18% GST

21 Jul '17
1 min read

Around 2,000 knitwear and readymade garment units in Tiruppur are observing a one day strike on July 21 to protest against the GST Council’s decision to place apparel job work under 18 per cent slab in Goods and Services Tax (GST). GST was rolled out across India from July 1, in place of 17 different Central and state taxes that existed earlier.

While knitting dyeing and compacting job work attracts only five per cent GST, other job work like printing, embroidery, button fixing, checking, ironing and packing attract 18 per cent GST.

Since the Tiruppur cluster functions under 90 days credit format (in the value chain), such a high GST will put the sector under financial stress, which will render people jobless going forward, a leading daily reported quoting a representative of New Tiruppur Hosiery Garments & Small Manufacturers Association.

The imposition of 18 per cent GST creates a huge burden on apparel job work units which run with capital investments of Rs 50,000 to Rs 50 lakh a month and on a 90-day credit format, Tiruppur Export Knit Printers Association, said. (RKS)

Fibre2Fashion News Desk – India

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