Amid strong protests by traders and opposition parties over Goods and Service Tax(GST), Haryana Chief Minister Manohar Lal Khattar made it clear that the advent of GST will not have an adverse impact on the texile business, as it is being made out to be.
“Textile has been placed in the slab of 5 per cent under GST. Presently, there is an embedded tax of central excise duties of 3.38 per cent and 2.8 per cent of VAT on cotton yarn. Therefore, the tax at the rate of 5 per cent on fabric is not going to put any additional burden on textile,” said Khattar.
The chief minister said this while addressing a seminar on GST for members of Legislative Assembly, Administrative Secretaries and Head of Departments organised by Excise and Taxation Department at CII, in Chandigarh Wednesday.
He further elaborated that the average rate of inflation is 6 to 8 per cent annually, and the minimal tax burden that may fall upon textile is not going to hamper the segment in any way. Rather, GST would bring the traders in the integrated chain of texile supply and allow them to use the benefit of ITC and it would promote accounted business and bring about more transparency.