Garment, Textile Sector
LUDHIANA: Concerns among the apparel and textile sector traders are increasing day by day, as January 1, 2022—the date when GST on some of their raw materials and products will be increased from 5% to 12%—is drawing near. Trade unions have written to Union Finance Minister Nirmala Sitharaman urging her to postpone the implementation of the new GST rates.
President of Ludhiana MSME Association Harish Karpal said, “GST Council has decided to increase the tax on woven fabric of silk or silk waste, woven fabric of wool or animal hair, woven fabric of cotton, woven fabric by 12%. has decided. Flax, many kinds of textile fabrics, all kinds of woven and woven fabrics and woven fabrics. As of now 5% GST is applicable on all these items, but from January 1, 2022, the GST will be increased by 7%. This will be a huge burden on the textile and apparel industry. It will become impossible for micro, small and medium enterprises to do business. Therefore, we have sent a letter to the Union Finance Minister Nirmala Sitharaman requesting her to intervene in the matter and defer the decision for at least one year.”
According to Narinder Mittal, General Secretary, Ludhiana Business Forum, “If the GST on textile and apparel products and raw materials is increased from 5% to 12%, it will not only make apparel costlier but also create another problem. Because we have to invest more capital in our business. In the current situation, when there is a huge shortage of funds and there is also a recession, then this decision to increase GST can prove to be fatal for small industries.
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