Uniform GST Rate Likely For Textile Industry, Says Smriti Irani

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Uniform GST Rate Likely For Textile Industry, Says Smriti Irani

The textile sector is likely to see a uniform rate under Goods and Services Tax (GST), Union Textile Minister Smriti Zubin Irani said recently.

Industry sources said that when asked about the GST, she urged industry associations to give suggestions and views during meetings that will be held in different cities shortly. She also indicated that there might be a uniform rate across the value chain.

The minister took part in a meeting of the Parliamentary Consultative Committee on development and modernisation of power loom sector and another one with the industry associations. The Centre has allocated Rs 52 crore for the powerloom sector in 2014-2015 and Rs 110 crore in 2016-2017, she stated.

The ministry had introduced the PowerTex India Scheme, which included subsidy for weaving units which wish to go for solar energy and construction of dormitory for workers. She urged power loom weavers to use the helpline to get guidance on schemes and subsidies for the sector.

Textile Commissioner Kavita Gupta, who accompanied the minister, said that the outlay for powerloom sector this financial year is Rs 166 crore.

During the meeting with the industry, on she asked the industry to collect concrete data to support its plea demanding removal of anti-dumping duty on imports of manmade fibre. Regarding fluctuating yarn prices, she urged the powerloom sector to avail of the yarn bank scheme project under the PowerTex India scheme.

She said that 11 members could form a special purpose vehicle for which the government would provide Rs 2 crore and a matching amount should be invested by stakeholders to stock yarn for use at the time of a crisis.

She said that the much awaited National Textile Policy will be announced shortly.