MADURAI: The Tamil Nadu Chamber of Commerce and Industry has today made a fervent appeal to drop the GST Council’s proposal to increase the base rate of GST on textiles and clothing from 5 per cent to 12 per cent from January 1st 2022.
Mr.N.Jegatheesan, president, TN Chamber of Commerce and Industry, has issued an important press statement from Madurai on 30th October 2021 stating that the GST Council’s proposal for a tax base rate hike on textiles will greatly cripple the textile sector as the costs of raw materials such as yarn, fuel, packaging products and transport continue to rise day by day. “The COVID lockdown had made things worse for this sector and only now MSME units in textiles sector are slightly recovering by availing additional loans under emergency credit assistance scheme in banks. The proposed 7 per cent tax increase will adversely affect the textile industry,” he had cautioned the GST Council in his press statement today.
Stating that those who are engaged in textiles and clothing business sector are perturbed and schocked due to the GST Council’s proposal to increase the GST base rate on textiles from 5 per cent to 12 per cent from 1st January 2022, the TN Chamber president Mr.Jegatheesan had pointed out that if the GST rate on textiles and clothing is increased, then the less expensive clothes will also have to be charged 12 per cent GST and ultimately it will lead to consumer negativity.
“In our country, textile readymade garments and knitting units are mostly cotton based industry and they produce a large portion of traditional garments such as dhoties and sarees which are mainly used by people in middle income and poor sections. Nearly 11 million workers are employed in knitting / readymade garments units in our country. A considerable number of employees are working in embroidery and packing units. The livelihood of millions of families will be severely affected with the GST rate hike in textile sector,” the Tamil Nadu Chamber of Commerce and Industry president Mr.N.Jegatheesan has said in his appeal on behalf of the textiles sector and expressed concern that GST rate increase will lead to more business closures and job losses in textiles industry.
