GST: Exemption To Hill States Will Ruin Local Units, Fears Punjab Knitwear Industry

Knitting

GST: Exemption To Hill States Will Ruin Local Units, Fears Punjab Knitwear Industry

The Punjab-based knitwear industry has protested against the Centre’s decision to give tax exemption to the hill states of Jammu & Kashmir, Uttarakhand and Himachal Pradesh under GST, as part of a special industrial package.

Reacting sharply to the Centre's decision to give tax exemption to the hill states, Knitwear Club Chairman Vinod Thapar as well as Knitwear & Textile Club General Secretary Charanjiv Singh have written to the two union ministers from Punjab, namely Harsimrat Kaur Badal (Shiromani Akali Dal) and Vijay Sampla (BJP), urging them to convince the Centre to give similar a package to Punjab as well.

They stated that the 12% to 28% GST rate on knitwear products has proved to be a big blow to the Punjab-based knitwear industry due to which it has reached a stage of bankruptcy and also caused loss to the state’s exchequer.

They stated that thousands of units in the small-scale and cottage sector are on the brink of closure, as a direct result of excluding Punjab's knitwear industry from the special package given to the Himalayan states.

Arguing that Punjab’s knitwear industry should also be given tax exemption, they stated that a level playing field has been denied to the industry in Punjab, which is ailing and could now migrate to hilly states. Although the hill states were already enjoying tax exemption, the tax holiday under the GST regime will give the local industry in Punjab a reason to move to the hill states, they said.

They stated that since the BJP and the Akali Dal are the major political stakeholders in Punjab, it becomes incumbent upon both ministers to fight effectively for the interests of the Punjab-based industry. Since both ministers are part of the Union government, they are expected to protect the interests of Punjab's knitwear industry, they said.