Reverse move to increase GST on textile items, AIADMK urges Centre

Chennai: AIADMK top leader O Panneerselvam urged the Centre to ensure that the GST slab rate is brought down to 5 per cent on textile and apparel items.

In the wake of the twin factors of the COVID-19 pandemic for the last two years and huge rise in the price of cotton yarn, the textile industry in Tamil Nadu is already facing hardship and lot of challenges, Panneerselvam, who is also a former Chief Minister said.

Against such a background, a decision was taken by the GST Council in its last meeting to correct the inverted tax structure by rising GST from 5 per cent to 12 per cent for several textile and apparel items with effect from 1 January 2022, the AIADMK leader said in a letter to Union Minister for Textiles, Piyush Goyal.

"It has come as a blow to micro, small and medium-scale textile and clothing units in Tamil Nadu leading to loss of livelihood for lakhs of workers. This move will push up prices for consumers and spike in inflation," he said.

The Tamil Nadu Federation of Power Looms Associations is demanding a restoration of GST to its previous slab of 5 per cent, Panneerselvam pointed out.

"I, therefore, request you to kindly take up this matter with the Ministry of Finance and ensure that the GST slab rate is brought down to five per cent on textile and apparel items."