Power loom weavers in the country’s largest man-made fabric (MMF) sector in Surat are worried over a likely move by the Indian Government to review the present rates of goods and services tax (GST) in the textile sector. The weavers fear any review of the rate may adversely affect manufacturers while possibly benefiting the yarn spinning sector.
The Federation of Indian Art Silk Weaving Industry (FIASWI), on behalf of other important associations representing the power loom industry, has written to Finance Minister Nirmala Sitharaman over the issue, according to a report.
The government incurred a loss of over Rs. 3,500 cr after it reviewed GST rate on yarns from 18 per cent to 12 per cent, while MMF fabrics continued to be taxed at a rate of 5 per cent, with no refund of input tax credit.