Darshana Jardosh, Union Minister of State for Textiles, stated that GST was implemented by the government to rationalise multiple taxes on goods and services and to bring uniformity and transparency to the taxation system.
Despite repeated requests from the Telangana government to repeal the Goods and Services Tax (GST) on handlooms, the BJP-led union government has refused to consider the pleas to help the weaving community.
This was clear from the union government’s Rajya Sabha responses. Sushil Kumar Gupta asked on Friday whether the union government was considering exempting the weaving industry from GST. Darshana Jardosh, Union Minister of State for Textiles, responded that GST was implemented by the government to rationalise multiple taxes on goods and services, as well as to bring uniformity and transparency to the taxation system.
As a result, it was extended to the textile industry, including handlooms. GST rates were established based on the recommendations of the GST Council, which is comprised of the Union Finance Minister and Ministers nominated by representative State Governments. The GST Council made a recommendation at its 45th meeting to increase GST rates on textile products and related services from 5% to 12% in order to correct an inverted duty structure in these goods and services. Following that, at its 46th meeting, the GST Council decided to postpone the increase in GST rate on textiles and textile-related job work services. As a result, the GST rate on garments and fabrics has not changed, according to the Minister.
Given the difficulties faced by the textiles sector, particularly weavers, the Telangana government has urged the union government to eliminate GST on handlooms. On August 27, Handlooms Minister KT Rama Rao urged the Central Government to change the rules and repeal the GST on handlooms and Khadi.
Aside from that, on October 22, the Minister launched a post card campaign demanding that the GST on handloom be repealed. Thousands of weavers joined the campaign, sending handwritten post cards to Prime Minister Narendra Modi, pleading with him to repeal the 5% GST on handlooms.
