Kurnool MP Butta Renuka called on Prime Minister Narendra Modi in New Delhi on Friday and urged him to exempt the textile and handloom sector from the purview of GST to extend relief to manufacturers, traders, retailers and consumers.
Accompanied by her husband Neelakantham, Ms. Renuka met the Prime Minister and urged him to exempt handloom products, especially products reserved under the Handlooms Reservation Act, 1985, from GST. The government levied 5% GST on cotton fibre, yarn and fabric against nil taxation and placed silk and jute in the nil tax category, but 18% GST was levied on synthetic fibre yarn and it would adversely impact the industry. GST of 12% was levied on apparels as against 6 to 7% tax in the past and apparels costing below ₹1,000 would attract 5% GST. Eighteen per cent GST was levied on hand-made yarn and fabric made from it would be taxed with 5%GST, the MP said.
The textile industry provided direct employment to 4.50 crore persons and generated indirect employment to six crore persons and handloom sector provided employment to 50 lakh persons, she said.
