Ludhiana: In the setback to Garment and Textile Consumers and Consumers, starting January 1, GST in articles used by industry, such as threads, fabrics, fabrics, will increase to 12%.
According to experts and tax entrepreneurs, this step will lead to increasing the price of clothing and textile articles for the final consumer and also an increase in investment costs for entrepreneurs.
At present, there are several input items where 5% GST applies, but on the final product made of this (such as clothing) 12% and employers must claim differences in 7% of GST as input tax credit (ITC) from the department.
But with this new decision they will now pay 12% GST on their purchases too and this, they say, will increase their investment costs.
However, the GST authorities decided the new rules to fight the Billing Bogus problem, which was executed by the gang to take advantage of a difference of 7% GST.
NK Tax Expert Thamman said, “At present, GST on all types of fabrics is 5%.
Similarly, the GST level is 5% on clothing and textile articles made from the selling value do not exceed Rs 1,000 per piece.
Input material input some items such as threads (Besides natural threads) attract 12% GST, while most others have 5% GST.
Units that produce these items claim ITC returns because of this task structure.
This leads to a refund of fraudulent.
“” The GST Board has discussed correcting the task structure.
It was in the previous meeting too, but delayed a decision for the right time.
Now, in the 45th meeting was held recently, it was proposed to increase GST in all textile articles to 12% so there would be no refund because ITC was not used.
However, this step will increase the price of garment and textile articles made for end consumers, “Thamman added Billing Billing, but increasing GST 7% on all items that currently attract 5% tax will have a serious impact on garment and textile producers.
Our investment costs will rise steep consumers and retail will also suffer because the garment rate and textile articles will increase due to this tax difference.
We urge the GST board to find other ways to check the problem of fake bills.
“According to Narindal Mittal, the Secretary General of the Ludhiana Business Forum,” a 7% GST increase will be proven to be a major setback for this industry.
Facing the crisis of severe funds because of locking.
Right when garment and textile producers hope for assistance from the government to revival, we have experienced surprises.
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