A delegation of the textile processing association of Gujarat and Maharashtra has decided to make representations before Union Finance Minister Piyush Goyal and Revenue secretary Hasmukh Adhia regarding Input Tax Credit accumulated since the day GST was implemented. The powerloom and textile trading segment and textile processors approached Navsari BJP MP C R Patil to mediate the representations.
According to members of the delegation, the South Gujarat Textile Processors Association (SGPTA) will meet Goyal and Adhia on June 5, where issues related to the textile processing industry will be put forward. Maharashtra Textile Processing Association president Rajiv Jalan will also attend the meeting.
The demands to be put forward includes the difficulty in procuring input tax credit refunds following the implementation of GST. The industry has contended that the form for securing tax credit, ITC 4, is difficult to understand. They have requested that the form be made simpler and have a reverse credit mechanism.
SGTPA president Jitu Vakhariya said, “Our input tax benefit has been pending since day one and it has accumulated into estimated hundreds of crores of rupees. The processing industry is facing cash crunch and if such amount is released then it would benefit the industry.”