Garment, SectorLudhiana Textile: Anxiety among Garment Textile Sector Entrepreneurs and increases from day to day, as January 1, 2022-date when GST on some raw materials and the product will climb to 12% from 5% – is approaching.
The business association has written a letter to the Minister of Finance Nirmala Sitharaman, urging him to delay the implementation of the new tariff of GST.
Risha Kairpal, President of the Association of Ludhiana MSME, said, “The GST board has decided to climb a tax for 12% on silk woven fabrics or silk leftovers, Fabric of wool or from animal hair, woven fabric from cotton, woven fabric from Lena, several types of textile clothing, all kinds of weaving fabrics and knitted woven clothing.
Until now, the 5% GST applies to all these items, but from January 1, 2022, GST will increase by 7%.
This will be a big burden on the textile and garment industry.
This will be impossible for micro, small and medium enterprises to do business.
Therefore, we have sent a letter to the Minister of Finance Union Nirmala Sitharaman asking for his intervention in this matter and delaying this decision by at least one year.
“According to Narinder Mittal, Secretary General of the Ludhiana Business Forum,” If GST on textiles and garment and material products Raw climbing from 5% to 12%, it will not only make a more expensive garment, but it will also cause other problems for us because we have to invest in our business.
In the present state, when there is a large lack of funds and recession as well, this decision increases GST can prove fatal for small industries.
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