1. Home >
  2. Export Import News >
  3. GST News >
  4. Bhilwara's textile traders demand GST relief, better power supply >
  5. Bhilwara's textile traders demand GST relief, better power supply

Online Export Import Data Search

Complete Training Video : Click Here

Bhilwara's textile traders demand GST relief, better power supply.

Date: 26-04-2019
Subject: Bhilwara's textile traders demand GST relief, better power supply
Neerav Makharia has been engaged in the yarns business for over 24 years in Bhilwara, Rajasthan. In July 2017, he was introduced to a new system of taxation called Goods and Services Tax (GST). Within a few days, the entire system had to be computerized and prices of goods went up by 20 percent leading to massive losses.

"We (Bhilwara) produce almost 40-45 percent of the total yarn manufactured in India. But there is a GST of 12 percent on yarn. How will we survive?" he asks.

After GST was introduced, cloth is taxed at 5 percent whereas yarn is taxed at 12 percent. Input credit is also not available to the businesses.

The immediate demand for the Lok Sabha elections 2019 is for GST to have minimal taxes for all raw clothing categories including textile, polyester yarn, wool and other materials. Further, textile traders have also sought tax sops for entities engaged in the business for more than 20 years.

More than 20,000 people are employed in this Rs 700-crore industry in Bhilwara, considered one of the textile hubs of India.

P L Pagaria, general secretary of Ambaji Textile Market Association, said the government should have a uniform 5 percent rate for cloth textiles and yarns.

When one walks around the textile market of Bhilwara, it is a reality that several stores have downed shutters. Traders said many fellow businessmen could not sustain in the textile industry and have now shifted to industries like marbles and granite.

It is an irony that a majority of shops at the erstwhile textile market belong to finance companies and broking houses. Looking at the opportunity presented during the post-GST slowdown, dozens of alternate financing firms have opened up in Bhilwara.

"Businesses were running into losses and banks were not ready to provide loans. Hence players like us have set up an alternate channel to raise funds for the SMEs," said Prakaran Behati, owner of Aashirward Finance.

Though the situation is not very bleak and those seriously in the trade are slowly bouncing back, businesses want assurances from both the centre and the state that their issues will be looked at.

Rajasthan has two phases of polling in the Lok Sabha Elections 2019. Regions like Bhilwara, Ajmer, Jodhpur and Udaipur go into polls on April 29 while others like Jaipur, Alwar and Bikaner will vote on May 6.

"Power supply is a major issue and no subsidies are available. The government should pay heed and give us some discounts because our mills rely heavily on electricity," said Darshan Saraogi of DS Clothing Mills.

At a time when Congress is the ruling party in Rajasthan with Bharatiya Janata Party (BJP) in the centre, a few traders are also of the view that having the same party in the centre and state would mean their concerns would be resolved quickly.

Incumbent Subhash Chandra Baheria is contesting from Bhilwara constituency representing BJP while the Congress has fielded Rampal Sharma.

Source: moneycontrol.com

Get Sample Now

Which service(s) are you interested in?
 Export Data
 Import Data
 Exim Help

What is New?

Date: 18-07-2019
Notification No.52/2019 - Customs (N.T.)
Exchange Rates Notification No.52/2019-Customs (NT) dated 18.07.2019.

Date: 18-07-2019
Notification No. 33/2019 – Central Tax
Seeks to carry out changes in the CGST Rules, 2017

Date: 18-07-2019
Notification No. 34/2019 – Central Tax
Seeks to extend the last date for furnishing FORM GST CMP-08

Date: 17-07-2019
Notification No. 11/2015-20
Merger of Council for Trade Development and Promotion (CTDP) in to Board of Trade (BoT)

Date: 17-07-2019
Public Notice No. 19/2015-2020
Allocation of additional quantity of 1239 MTRV for export of sugar to USA under Tariff Rate Quota (TRQ)

Date: 16-07-2019
Notification No:10
Amendment in appointing a new Statistics Office under Collection of Statistics Act 2008

Date: 16-07-2019
Circular No 19/2019-Customs
Implementation of PGA eSanchit- Paperless Porcessing under SWIFT- Uploading of Licenses/ Permits/ Ceritificates/ Other Authorizations (LPCOs) by PGAS - reg.

Date: 15-07-2019
Notification No. 51/2019-CUSTOMS (N.T.)
Tariff Notification in respect of Fixation of Tariff Value of Edible Oils, Brass Scrap, Poppy Seeds, Areca Nut, Gold and Silver- Reg

Date: 12-07-2019
ECA Circular No. 26/2015-20
Action for recovery of Penalty, Pending Appeals/Reviews

Date: 12-07-2019
Notification No. 50/2019- Customs (N.T.)
Amendment to the Notification No. 63/1994-Customs (N.T) dated 21st November, 1994, by notifying the pipeline of M/s Indian Oil Corporation Limited connecting Barauni, Patna, Motihari, Nonea in India to Amlekhgunj in Nepal as additional route for Raxaul LCS

Exim Guru Copyright © 1999-2019 Exim Guru. All Rights Reserved.
The information presented on the site is believed to be accurate. However, InfodriveIndia takes no legal responsibilities for the validity of the information.
Please read our Terms of Use and Privacy Policy before you use this Export Import Data Directory.


C/o Infodrive India
E-2, 3rd Floor, Kalkaji Main Road
New Delhi - 110019, India
Phone : 011 - 40703001