While welcoming the reduction of GST rates for most of the textile raw materials, knitwear unit owners here expressed unhappiness over job works like gaja-buttoning, ironing and packing, which were tax-free earlier, continuing under 5% GST rate.
“These three job works, carried out at 300 registered units and many unregistered units, were significant in knitwear making. Earlier, these units were tax-free until 5% of GST was imposed,” said general secretary of Collar Work and Hosiery Small Industries Association KS Babuji.
Unlike captial-intensive processing units, the units get revenue from garment manufacturers, Babuji. “The 5% GST is affecting us severely. During the recent GST council meet, the government considered various demands. But, our request of seeking GST exemption for these jobs works was not considered,” he said.
However, he said the reduction of GST rates from 18% to 5% on raw materials used in textile industries would benefit the knitwear industries too. Besides knitwear, woven industries will also benefit from reduction in tax rate. “It will benefit us, because, when the woven products were not doing well, hosiery products like vests and briefs would suffer. So, the new revised tax rate is expected to boost sales of woven products and hosiery products,” Babuji added.
Source: The Times of India
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