Mumbai GST protest: Power loom owners and weavers take problems to GST Council

The Maharashtra State Power loom Association Coordination Committee has listed proposals to resolve the issues

By: Express News Service | Mumbai | Published: July 16, 2017 2:30:03 am
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AMID AGITATION in the textile industry over the Goods and Services Tax (GST), a collective of power loom owners and weavers has made a representation of their problems in the new tax regime to the GST Council. In a memorandum to the council and State Finance Minister Sudhir Mungantiwar, the Maharashtra State Power loom Association Coordination Committee has also listed proposals to solve the problems.

The weavers have raised five major issues, which according to them, have crippled the textile industry of the state. One of the issues is that an Input Tax Credit (ITC) or set-off of Vat/CST paid goods in closing stock of June 30 is not allowed or allowed partly. “In such cases, if valid documents are available, the assessee should be allowed to take full credit of the State Vat or CST, whichever is actually paid by him,” read the memorandum.

Another problem, according to weavers, is the 5 per cent GST on all jobs in the process of converting yarn to fabric. With regard to this, the committee has suggested two solutions — to exempt the jobs from GST altogether or levy tax only on yarn, grey fabric and the finished product levels. “We request you and the concerned GST authorities to consider the issues/solutions positively and decide the same in the interest of simplification and smoother implementation of the GST in the state,” read the memorandum, signed by convener Pratap Hogade.

The committee has representatives from all textile hubs in the state, like Ichalkaranji, Bhiwandi, Malegaon, Veta, Yevala, Nagpur and Solapur. “The representatives met, discussed the problems and framed the memorandum. We are awaiting response from the state government and the GST Council,” said Hogade.

Over the past 25 days, textile units in the state have been shut down following a strike by textile merchants in Gujarat. A further 5 per cent GST on all jobs in the process of converting yarn to fabric and 18 per cent on yarn costs has made it difficult for weavers to operate in the new tax regime, they said.

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