AIADMK coordinator O Panneerselvam recently urged Union Minister Piyush Goyal to restore the old GST rate of 5 percent on textile and Apparel items.
In a letter to the Union Minister, the former Tamil Nadu Chief Minister said the textile industry in the state had been contributing a significant percentage to the country’s economy. It enabled the Centre and the state Government to earn substantial revenue, besides foreign exchange through exports, providing direct and indirect employment.
The GST Council had taken a decision in its last meeting to correct the inverted tax structure by increasing GST from 5 percent to 12 percent for several textiles and apparel items with effect from January 1, 2022.
Panneerselvam said the move had come as a big blow to micro small and medium-scale textile and clothing units in the state, leading to loss of livelihood for lakhs of workers. “This move will push up prices of consumers and spike in inflation,” he said, pointing to the demand from The Tamil Nadu Federation of Powerlooms Associations to restore the GST to its previous slab of 5 percent.