For the larger benefit of the Indian textile sector under the new GST regimethe Federation of Gujarat Weavers Welfare Association (FOGWWA) has demanded that the central government should implement fiber policy for all types of fibers to attract the same duty.
A memorandum was submitted by FOGWWA to district collector Mahendra Patel on Friday with a slew of demands, including implementation of fiber policy, refund of accumulated GST credit, no GST on all types of job work required to manufacture grey fabric by the powerloom weavers, lowering GST on yarn at 5 per cent or 12 per cent and imposing extra duty on the imported fabrics.
FOGWWA office-bearers says that the inverted duty structure will increase the cost of fabric. The weaving job-work is done by the small units. Around 70 per cent of the units in the decentralized textile sector are working on job-work. The 18 per cent GST on job-work will force the small units to down the shutters as the cost of fabric will increase compared to the fabric manufactured in composite units.A huge number of powerloom units are engaged in job-work, there will be high job losses in the industry.
President of FOGWWA, Ashok Jirawala states that they are not opposed to GST, but there is a need of simplification of the tax in the sector. According to him there should be a uniform duty in the textile and the government should not treat the MMF sector as a step baby. Jariwala further added, that they will be visiting Gandhinagar on Tuesday to seek support from the opposition parties to help the MMF sector. With just few days to go, the sector needs clarity on the GST rates. The industry can't survive with 18 per cent and 5 per cent rates.