New Delhi : The Government has created more hurdles for the textile Industry by amending the GST rate from 5 per cent to 12 per cent, according to PHD Chambers of Commerce and Industry.
The Government had changed the GST rate from 5 per cent and 18 per cent to 12 per cent to overcome the refund of Inverted Duty Structure with effect from January 1, 2022.
Increasing the GST from 5 per cent to 12 per cent would not help the Textile Industry as this sector is mostly unorganised, said Bimal Jain, Chair, Indirect Tax Committee, PHDCCI in a release here.
“Instead, the Government should have brought down the rates of raw material to 5 per cent to ensure sustainability of the sector as it creates unemployment opportunities, fighting with pricing and costing etc,” Jain opined.
Further, if the intention of the government was to remove the inverted duty structure, then reversal of ITC should not have been made compulsory for the textile industry in July 2018, the PHDCCI release said.
Jain called upon the textile industry to place its representation before the GST Council to either re-allow the reversal of ITC made by the industry in July 2018 or any alternative solution to mitigate the said reversal loss.
