Revenue Secretary Hasmukh Adhia Addresses Textile Traders’ GST Concerns

Trade & Policy

Revenue Secretary Hasmukh Adhia Addresses Textile Traders’ GST Concerns

Revenue Secretary of the Union Ministry of Finance Hasmukh Adhia told textile traders in Surat that GST is an attempt to reduce corruption by minimum human interference in the system and get rid of parallel economies like black money and terror funding activities in the country.

The GST outreach programme was organised by the Central Excise, Customs and Service Tax Department in association with South Gujarat Chamber of Commerce and Industry (SGCCI) and Surat Art Silk Cloth Manufacturers Association, at the Veer Narmad South Gujarat University’s convocation hall.

He said that GST would establish a uniform tax system all across the country. It will be a common national market, abolishing the different tax systems by different states. If common tax rate is implemented in the country, then warehousing logistics and transportation requirements will go down and we will get the benefit of the input cost. Goods will be cheaper,” he said. He said that the cascading effect of tax will end. Secondly, GST is an Internet-based system, starting from registration to return filing. Traders will even get refunds in their bank accounts mentioned during registration, he said.

However, SGCCI president B S Agrawal said that the Surat textile industry which produces 40% of India’s synthetic cloth is unorganised and would face the burden of keeping records for GST. He also raised the issue of exemptions granted to medium and small scale industries, having an annual turnover of Rs. 1.5 crore under Central Excise Act.

Federation of Indian Art Silk Weaving Industry Chairman Bharat Gandhi said that local manufacturers are going through a crucial period as they have to pay the excise duty and other taxes as well as face tough competition from cheap fabric, imported from China. Adhia explained that if the total amount of commission or service charge exceeds Rs 20 lakh per annum, then textile units will have to pay GST.