Online Export Import Data Search Search

Complete Training Video : Click Here

With GST, cheap saris to be ‘3 times’ costlier.

Date: 15-07-2017
Subject: With GST, cheap saris to be ‘3 times’ costlier
Saris and dress materials that were available for only Rs 70 would cost around Rs 200 if the Centre does not withdraw 5 per cent GST imposed on the textile industry, said the president of Surat textile traders’ body, which has been protesting the new tax regime for around one month.

With little or no textile trading activity in the city for over the past 20 days, powerlooms too had shut down for five days. However, these units opened on Friday.

Owners of powerloom units in the city had joined the textile traders protest, demanding the Centre withdraw GST (Goods and Services Tax) on the industry. Before the imposition of the GST on July 1, the textile industry was exempted from taxation.

Federation of Surat Textile Traders Association (FOSTTA) president Manoj Agrawal said, “The Surat textile industry caters to rural and poor population of India by supplying cheaper saris — some costing as less as Rs 70. Now, with the imposition of GST, the cost of the saris will go up. The textile industry of Surat does not only manufacture cheapest saris, but also luxurious ones, costing around Rs 7,000. There is no major market of the cheapest and the costliest saris in India, but those priced between Rs 200 and Rs 250 are high in demand in all states. We expect that after GST, the prices of these saris will rise to Rs 350 to Rs 400. Besides GST on yarns, manufacturing and trading are taxed and the final product reaching the customers will cost more.” Until GST, those involved in the industry used to pay income tax only.

Some experts said the traders and owners of powerlooms apprehended government officials now looking into their documents and records with the industry coming under tax purview. This, they said, led to strike by weavers and traders.

According to experts, Surat mills out around 40 per cent of the country’s total synthetic fabric production and saris made from man-made fibres are cheaper and bought by the poor. A chartered accountant requesting anonymity said, “The entire textile trading and weaving sector wanted to keep themselves safe from the tax officials and for that they are protesting the GST. They don’t want any government official to peep into their business. They claim that they are paying income tax and wanted to get free from other tax structures.”

There are over 9 lakh powerlooms in Surat city and the district and weave out over 6 crore metre of cloth everyday. Over 4 lakh labourers, mostly from Uttar Pradesh, Bihar, Maharashtra, Odisha, West Bengal and Rajasthan, work in the powerloom units. The daily turnover of the powerloom units is estimated to be Rs 90 crore.

Sachin Weavers Association president Mahendra Ramolia said, “Earlier 12 per cent VAT was imposed on yarn manufacturers, but now as per the new tax regime, 18 per cent GST has been imposed on yarn, while 5 per cent on powerloom units, 5 per cent GST on traders and 5 per cent on dyeing and printing units.”

He further said, “If government is firm on implementing GST, they should tax the yarn manufacturers more. Majority of textile traders and powerloom factory owners are not much educated. We don’t want to fall into hectic work of filing returns of GST and for that we have to appoint accountants and give him salary. We have demanded that we will file return quarterly.”

Source: indianexpress.com

Get Sample Now

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

What is New?

Date: 21-09-2017
Notification No. 90/2017 - Customs (N.T.)
Exchange Rates Notification No.90/2017-Custom(NT) dated 21.09.2017

Date: 20-09-2017
Circular No. 37/2017-Customs
Implementing Electronic Sealing for containers by exporters under self-sealing procedure prescribed by Circular 26/2017-Cus dated 1st July, 2017 and Circular 36/2017 dated 28th August, 2017.

Date: 18-09-2017
Notification No. 45/2017-Customs (ADD)
Seeks to impose anti-dumping duty on "New/unused pneumatic radial tyres with or without tubes and/or flap of rubber (including tubeless tyres) having normal rim dia code above 16'' used in buses and lorries/trucks",originating in or exported from China PR.

Date: 16-09-2017
Circular No. 35/2017-Customs
Guidelines for provisional release of seized imported goods pending adjudication under Section 110A of the Customs Act, 1962.

Date: 15-09-2017
Notification No. 87/2017 - Customs (N.T.)
Tariff Notification in respect of Fixation of Tariff Value of Edible Oils, Brass Scrap, Poppy Seeds, Areca Nut, Gold and Sliver.

Date: 15-09-2017
A. P. (DIR Series) Circular No. 04
Export Data Processing and Monitoring System (EDPMS) Issuance of Electronic Bank Realisation Certificate (eBRC)

Date: 15-09-2017
Notification No. 76/2017-Customs
Seeks to amend certain customs notifications in pursuance to change made in Budget 2017-18.

Date: 15-09-2017
Notification No. 35/2017-Central Tax
Seeks to extend the last date for filing the return in FORM GSTR-3B for the months of August to December, 2017.

Date: 15-09-2017
Notification No. 34/2017-Central Tax
Seventh amendment to the CGST Rules, 2017.

Date: 15-09-2017
Notification No. 33/2017-Central Tax
Notifying section 51 of the CGST Act, 2017 for TDS.

Exim Guru Copyright © 1999-2017 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