Textiles industries welcome decision to postpone GST hike | Coimbatore News

Tirupur: Textile industries here have welcomed the Union government’s decision to postpone the GST hike on textiles from 5% to 12%, which was due to go into effect on January 1.
Tirupur is home to more than 12,500 knitwear and allied units which employ more than 10 lakhs. The Covid-19 pandemic and containment affected units, especially MSMEs.
Tirupur Exporters and Manufacturers Association (Teama) President MP Muthurathinam, who has met with the Union Finance Minister twice in the past month to reiterate the demand, said the very relief expected for the textile industry will help recover from pandemic losses.
“The industry also faces extreme competition from countries like China, Bangladesh and Vietnam. It depends on the domestic market to support the business and an increase in the GST would have had a negative impact on sales. The cost of inputs needed to make clothing has increased. The price of raw cotton alone has increased by Rs 130 / kg compared to last year. Adding to the woes is the shortage of labor and containers, ”Muthurathinam said.
In a statement, Tiruppur Exporters Association (TEA) President Raja M Shanmugham thanked Finance Minister Nirmala Sitharaman for respecting the 5% GST rate. “It will help the garment industry, especially people who buy value-added items,” he said.

FacebookTwitterLinkedinE-mail

Source link