GST: Telangana seeks 50 per cent subsidy from Centre on yarn for handloom sector

    HYDERABAD: The Telangana government has sought 50 per cent subsidy on yarn for the textile industry, from the Centre. Besides, it wanted the GST council to consider waiving the tax on handloom products for two years, in order to support the sector during the present difficult times. In a letter to Union Minister for Textiles, Smriti Irani, Telangana Minister for Industries and IT, KT Rama Rao requested the Centre, as a short term measure, support of up to 50 per cent of wages of the workers in the sector, contingent on continued employment of workforce for 6 months as a long repayable in the long run.

    “Further, in order to encourage faster reboot of the sector, the Government of India could consider 50 per cent yarn subsidy across the handloom industry. As a special case, the GST Council should also consider complete waiver of GST on handloom products for a period of 2 years to boost the sector,” Rao said in the letter.

    Telangana has placed higher importance on the textile sector, as also handlooms, with a view to creating jobs even as the state is coming up with textile parks in Warangal and Sircilla, with commitments from global and domestic investors, the minister said. KTR also urged the union minister to facilitate higher temporary credit facilities up to 30 per cent of current limits to meet the cash losses due to the ongoing lockdown to contain coronavirus, to enable the industry to meet its obligations towards its vendors.

    In order to support the industry, on a medium terms basis, there is a need to correct the inverted duty structure under GST on man-made fibers, besides transferring subsidies directly to cotton farmers accounts through direct benefit transfer instead of offering a minimum support price for their produce, Rao said in the letter.

    Source- Outlook India.

The post GST: Telangana seeks 50 per cent subsidy from Centre on yarn for handloom sector appeared first on GST Station.

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