Andhra Pradesh

A.P. opposed hike in tax on handloom sector: Buggana

Buggana Rajendranath Reddy

Buggana Rajendranath Reddy

The Goods and Services Tax (GST) Council has decided to defer the hike in tax rate on textiles from 5% to 12%. Andhra Pradesh and several other States opposed the hike at the 46th GST Council meeting chaired by Union Finance Minister Nirmala Sitharaman on Friday.

Speaking to reporters after the meeting, State Finance Minister Buggana Rajendranath Reddy said that any hike in GST on textiles would impact Andhra Pradesh the most. There are about 3 lakh handloom weavers and most people wear cotton clothes unlike nylon in other States. Andhra Pradesh has requested the Council to take a call on increasing the GST on textiles after conducting a comprehensive study.

A.P. pointed out there was no clarity on GST to be imposed on apparel, clothing and textile products. There was no clarity on the rate of GST that would be imposed on nylon and cotton fabric as well as manmade and natural textiles. There were also no estimates available with the Council on any possible increase in refund, he said.

Mr. Rajendranath Reddy said issues arising out of bifurcation of the State were also discussed at the meeting. “The cost of the Polavaram project is on the rise due to the Land Acquisition Act enacted in 2013. About ₹20,000 crore would be the escalation in cost. The Centre is requested to approve the latest estimates,” the Finance Minister said said.

The Centre was also requested to take steps to implement Dugarajapatnam Port, Kadapa Steel Plant, petrochemical complex and other projects as per the Bifurcation Act. The Centre was also requested to make necessary allocations for these projects in the ensuing budget, he added.


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Printable version | May 22, 2022 8:58:18 pm | https://www.thehindu.com/news/national/andhra-pradesh/ap-opposed-hike-in-tax-on-handloom-sector-buggana/article38083800.ece