Textile traders in trouble over new GST rates

- Antenna: Vivek Mehta

- As the prices of raw materials go up, the business maths of textile processors is reversed.

Textile traders-processors are in trouble. Textile traders are suffering due to the change in GST rates. Rs. The GST Council is considering raising the Goods and Services Tax on readymade garments priced below Rs 1,000 from 5 per cent to 12 per cent. GST on readymade garments is less than the raw material of garments. So their input tax credit remains credited to the government. The government has decided to levy 12 per cent GST on all items, including cotton yarn, cotton fabrics and gray fabrics, instead of 5 per cent. Rahul Mehta, chief mentor of the Clothing Manufacturing Association of Mumbai, says, “The government has slashed three out of four slabs of GST. So merging the 12 and 15 per cent slabs will bring textiles and garments with a 12 per cent GST slab into the 18 per cent slab. Thus, readymade garments, gray fabrics and cotton yarns with a tax of 5 per cent are all likely to come under the tax range of 15 per cent. Traders and consumers of cotton yarn, cotton fabrics and cotton garments are in danger of suddenly incurring a burden of 500 per cent GST.

CMAI President Rajesh Masand, Chief Mentor Rahul Mehta, Lalbhai Group's Kulin Lalbhai, Sanjay Agarwal, Gaurang Bhagat of Nucleoth Market, Arvind Jalan and Naresh Sharma of Textile Processors Association met on October 8. Gaurang Bhagat, president of Nucleoth Markets, says, “At present, the government spends about Rs. 5,000 crore under GST. It is no longer appropriate to burden them. The plight of traders will increase. ' Rahul Mehta says if the government wants to increase GST on textiles with the intention of increasing revenue, it is likely to have the opposite effect. With a 5 per cent GST on textiles, most traders pay taxes. If the government raises the tax from 5 per cent to 12 per cent and then 12 to 15 per cent GST under the new system, the government's revenue may fall. This is because those who trade without evading tax at 5 per cent GST can turn to tax evasion if they are taxed at 15 to 18 per cent. It can also have an effect on income tax income.

Costing of textile processing is going up as the prices of raw materials for processing fabrics have gone up. The pace of new work is slow as textile traders have run out of old stock. Therefore, the Textile Processors Association of Ahmedabad has decided to keep the plant running only 3 days a month instead of 4 days a month. Naresh Sharma, vice-president of the Textile Processors Association, says the cost per tonne of costing linen used to process fabrics is Rs. 2000 to Rs. 2000 has been done. In the same way h. The price of acid per kg is Rs. 50 to Rs. 200 has been done. The price of vinyl sulfone is Rs. 5 to Rs. 200 has been done. The price of nitrite per kg is Rs. 5 to Rs. 3 are done. The price of acetic acid is Rs. More than Rs. 12 are gone. The price of MP DSA is Rs. 500 to Rs. It is 80. As low as this is, the price of coal per tonne is Rs. 2000 to Rs. 15,000. Thus a condition is created where one joint breaks thirteen.

On the other hand, the processing charge per meter is Rs. Comes from 10 to 20. Processors' margins have been slashed due to rising costs. If they do not work, they may have difficulty repaying the loan taken from the bank. They are also likely to incur losses if they do business with current processing charges. In Ahmedabad alone, 120 (1150 from Dani Lemda and 17 from Narol) process houses have been put in trouble. In the same way, the destruction of 2000 process houses in Surat has increased. Order raw material and after giving advance payment, if the price goes up again, the seller cancels the delivery. As a result processors are dying from everyone.