GST revision on handlooms will hamper industry: KTR to Centre

Hyderabad: Handlooms and Industries minister KT Rama Rao (KTR) on Sunday urged the Central government to withdraw its GST plans as he felt it would hamper the handlooms industry.

The Union government has planned to implement a revised GST plan from January 1, 2021. As per the revision 12% tax will be levied on handlooms as opposed to 5% at present. In a letter addressed to the Union Textile minister Piyush Goyal, KTR wrote that in the past two years, textiles and particularly the handlooms sector was going through a tough phase following the COVID-19 pandemic.

With regards to the situation of the industry, KTR wrote, “At this juncture, revising the GST from the current 5 percent to 12 percent would only be a death blow to the industry”

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Shedding light on the agriculture sector, textiles and handlooms sector provide the highest employment in the country, KTR said. Considering the current scenario, the need of the hour was to extend additional advantages and incentives to the sector, said the minister, adding, “The decision to increase GST on textiles and handlooms is not wise.”

Expressing displeasure over the increased GST, the minister said that the imposition of 5% GST on handlooms was resented, stating, “The current decision to impose additional seven per cent GST on handlooms would leave the sector crippled. Telangana produces world-class handlooms and weavers are worried about the Centre’s decision to increase GST.”

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