The Federation of Gujarat Weavers Welfare Association (FOGWWA) for the larger benefits of the Indian textile sector under the new GST regime has demanded that the Central government should implement fiber policy for all types of fibers to attract the same duty. FOGWWA submitted a memorandum to district collector Mahendra Patel on Friday with a slew of demands.
The demands included 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 percent or 12 percent and imposing extra duty on the imported fabrics.
FOGWWA office-bearers said that the inverted duty structure will increase the cost of fabric. The weaving job-work is done by the small units. Around 70 percent of the units in the decentralized textile sector are working on job-work. The 18 percent 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.
Sources said that the levy of 5 percent on fabric and 18 percent on weaving job work has led to the situation where the master weavers have informed their job workers to discontinue the job-work from 1st July as huge number of powerloom units are engaged in job-work, there will be high job losses in the industry.
President of FOGWWA, Ashok Jirawala said that they are not opposing the GST, but they need simplification of the tax in the sector, like the government has done for the cotton textile sector. They want uniform duty in the textile and the government should not treat the MMF sector as a step baby.
With just few days to go, the sector needs clarity on the GST rates as the industry can't survive with 18 percent and 5 percent rates. They will be visiting Gandhinagar on Tuesday to seek support from the opposition parties to help the MMF sector.
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