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