Surat: With
assembly elections in Gujarat around the corner, the central government has
gone all out to appease textile traders, weavers and those connected with the
embroidery sector in the country''s largest man-made fabric (MMF) hub in Surat.In the last fortnight or so, the Centre has
taken many decisions related to the Goods and Services Tax (GST) with a view to
ease the burden on textile sector. From reducing GST on yarn from 18% to 12%,
increasing basic customs duty by 25% to curb import of undervalued fabrics from
China, and giving relief in filing of GST returns, it has gone all out to
appease the textile sector.
However, industry leaders believe damage to the
textile sector was done when GST came into effect on July 1 and that these late
announcements are of no help to the textile sector now."Since last three years, we have been
making representations to the central government to increase basic customs duty
on imported fabrics. Two days ago, it took a decision to increase customs duty
by almost 25%, which is a welcome step," Pandesara Weavers Cooperative
Society Ltd president Ashish Gujarati said.
Gujarati added, "But most of our demands
are still pending. There was no need to reduce GST on yarn to 12%, when the
weavers will not be able to utilize the accumulation of input tax credit.
Traders, embroidery unit owners and lakhs of women associated with embroidery
business are unhappy with 5% GST."Federation of Gujarat Weavers''
Association (FOGWA) president Ashok Jirawala said, "The weaving sector is
observing month-long Diwali vacation. Many workers have left the city and may
not return. Most of the small weaving units may not open up after Diwali
vacation. Around 70% of the textile shops are shut. The damage has been
done."
Meanwhile, textile traders
hailing from Rajasthan are scheduled to meet Congress leader Ashok Gehlot on
Tuesday to discuss their issues and challenges faced by small traders in the
market due to GST implementation. The traders want an assurance that GST will
be removed on man-made fabrics."Till now, we have out and out supported
the BJP. In 2014 elections, we played a major role in popularizing Narendra
Modi in Uttar Pradesh, Bihar and Odisha. We want assurance from Congress now
that it will bail out traders and textile sector from the GST law," said
textile trader Hitesh Sanklecha.
Source: The Times Of India, India Friday, 01 December 2017