The flourishing overseas business of the two prominent industries — imitation jewellery and textiles (Kalamkari) — in Krishna district has come to a standstill as they are shifting to the Goods and Service Tax regime.
The GST is 3 and 5% respectively on the material required for both. The exports have been halted until all the registered units obtain the GST ID, replacing the Tax Identification Number issued by the Commercial Tax authorities.
“Practically, the transportation companies accept the export orders with valid GST ID linked with Aadhaar. We need to wait till we gain complete knowledge of the GST system,” said a Kalamkari exporter. The products are exported to Europe, U.S. and South Africa while imitation jewellery is exported to Malaysia, Sri Lanka, Bangladesh, Nepal and Pakistan, directly and indirectly.
According to the Imitation Jewellery Park’s statistics 2016-17, the business turnover has exceeded ₹100 crores, providing employment for nearly 40,000. At least 80% of the workforce is women. “The business has halted temporarily since July 1. The majority of the more than 100 imitation jewellery production units have already shifted to the GST system,” Imitation Jewellery Park Manufacturers’ Association former President P.V. Subba Rao told The Hindu .
The industry is the country’s second largest after Mumbai’s Dharavi. The production in both the industries did not get affected till date as the material had been procured in advance. The officials of the Commercial Taxes and auditors are in constant touch with the exporters, addressing their doubts on the GST and documentation.
