Coimbatore: Tirupur Exporters and Association Manufacturers (old) have urged the union government to impose plans to raise goods and services (GST) on garment products.
While attending a GST meeting led by Finance Minister Union Nirmala Sitharaman on Tuesday night, President MP Mutathurhinam said the central step to increase GST to 12% of 5% in textile clothing would have a negative impact on the minister’s industry, which had stagged under price increases Input.
By declaring that Tirupur is home to more than 12,500 knitted units, garments and allies, who employ more than 10 lakh people, he said pandemics and kuncians have affected them, especially micro, small and medium enterprises.
He said units in Tirupur contributed to exports to a $ 4 billion tone.
In the domestic market, he said, they did business worth around $ 2.80 billion.
“The cost of raw materials for clothing manufacturing has increased over the past year.
The price of raw cotton has jumped by Rs 130 per kg, compared to last year.
Labor shortage and containers add to their misery.” He said the textile units faced extreme competition from the country -Negara like China, Bangladesh and Vietnam in front of the export business.
“In the midst of this challenge, the entire textile industry depends on the domestic market to maintain business.
If GST will be upgraded to 12%, it will add to the load of the textile unit, many of which may be forced to close.” While Sitharaman has promised to see this problem, Old members plan to meet with the Minister of Finance, P Palanivel Thiagarajan, and Chair of the Constitutional Court of the Constitutional Court Stalin to submit a request in this matter at this GST board meeting.
They also seek prohibitions or regulations regarding raw cotton exports and threads.
Drop Plans to Climb GST on Garment Products, Tirupur Assn Notify the Center
