Revise GST, impose anti-dumping duty to boost textile sector: Parl panel

powerloomThe Textiles Ministry should impress upon the Finance Ministry to reconsider the overall GST structure for textiles sector and impose higher anti-dumping duty to protect the domestic industry, a Parliamentary panel has said. In its report tabled in Parliament on Wednesday, the Standing Committee on Labour chaired by Kirit Somaiya said it desires the Textiles Ministry to impress upon the Department of Revenue/Finance Ministry to reconsider GST structure for textiles. The panel noted that the Textiles Ministry has also taken up the issues on inverted duties structure on man-made fibre, imposition of GST on job work, credit transfer documents issues, non refund of input tax credit, GST for weaving industry, lowering of Goods and Services Tax (GST) rates for machinery used by MSME textile units, etc. It observed that against the Textile Ministry’s proposed outlay of Rs 101.09 billion during the year 2018-19, the Ministry of Finance have approved Rs 71.47 billion only. “The Secretary, Ministry of Textiles has deposed that though it appears that Budgeted Expenditure (BE) 2018-19 which includes Cotton Corporation of India’s loss of Rs 9.21 billion is more than the BE 2017-18 by Rs 9.21 billion, in reality BE 2018-19 is Rs 30 million less than the BE of 2017-18,” the Committee said in its report. It noted that the reduction of BE would adversely impact implementation of ongoing schemes of the Ministry of Textiles, particularly those aimed at benefitting the unorganised sectors of powerloom, handloom, handicrafts, wool and sericulture.

Source: Business Standard