Erode handloom weavers appeal for GST exemption

20 Jul '17

2 min read

In a fight for survival, the Erode District Handloom Weavers and Workers' Union has appealed to the Central government for exemption of handloom products from the ambit of GST. A representation has been made to Prime Minister in this regards. If the handloom sector is not exempted of 5 per cent GST, there will be a rise in unemployment.

The union has sought for 30 per cent refund on the selling of handloom items. The stocked items in the godowns will be sold only after the government approves their demand, said a leading daily quoting M Varadarajan, president of the Erode District Handloom Weavers and Workers' Union.

With the increasing demand for powerloom products, the survival of handloom industry has become difficult, said Varadarajan. According to the Handlooms (Reservation of Articles for Production), Act 1985, only 11 items are set aside for production in handlooms. GST on handloom items will only worsen the situation, added Varadarajan.

In the past, a request was made to finance minister Arun Jaitley by the Erode Handloom Cloth Merchants Association for withdrawal of 5 per cent Goods and Services Tax (GST) on textile goods. The association said that the 5 per cent GST on textile goods would adversely affect the trade.

Opposing the implementation of GST on textiles, the wholesale textile shop owners in Erode also observed strike earlier this month. (RR)

Fibre2Fashion News Desk – India

More Textiles News - India...