The Erode Power Loom Cloth Merchants Association has urged the Centre to withdraw the 5% Goods and Services Tax imposed on various power loom products.
In a letter to the Chairman of GST Council, New Delhi, its president S. Vaiyapuri Mudaliyar said that they could not continue their business if the GST is not withdrawn completely. The letter said that most of the looms are cottage industries in which family members are working for earning their livelihood. Job work is done by the looms and weavers are paid their wages that may vary from ₹ 5 lakh to ₹ 10 lakh a year. However, 5% GST is levied for the job work which is a burden. The letter urged the council to withdraw the GST on the job works.
Likewise, earlier there was no tax for cutting, embroidery, finishing, washing or pressing, packing, bleaching, dyeing, printing, knitting and colouring. But the textile job works were currently brought under the 5% GST slab which should be withdrawn and also remove the way bill system, the letter urged.
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