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Surat weavers seek more duty on Vietnamese silk
Jun '18
Surat MP Darshana Jardosh (right) submitting FIASWI
Surat MP Darshana Jardosh (right) submitting FIASWI's memorandum to Union textiles minister Smriti Irani in New Delhi. Courtesy: @ DarshanaJardosh
Seeking a level-playing field, silk weavers from the Indian textile hub of Surat have urged the government to impose 10 per cent customs duty on silk fabrics imported from Vietnam. At present, silk fabrics produced in India attract a goods and services tax (GST) of five per cent while silk fabric imports from Vietnam enter duty free in the country.

There is GST of 5 per cent on fabrics manufactured in India, while the imported silk fabrics have zero duty. As a result, the imported silk fabrics are cheaper by Rs 45 per metre as compared to the fabrics made in India, the Federation of Indian Art Silk Weaving Industry (FIASWI) said in a memorandum submitted to Union textiles minister Smriti Irani.

The issue of input tax credit (ITC) refund was also raised by FIASWI in its letter, which was submitted on their behalf by Surat MP Darshana Jardosh.

The non-refund of accumulated ITC is resulting in losses to the industry and drastic reduction in capital investment for machine modernisation, FIASWI said. (RKS)

Fibre2Fashion News Desk – India

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