FIEO seeks TN govt’s help on GST issues

While highlighting the issues of exporters he said export sector contributes immensely for the development of states especially in creating huge employment opportunities and hence there is a need to take care of the apprehension of exporters that GST will affect their  liquidity. A delegation of FIEO including Sakthivel and Rafeeque Ahmed, CP, FIEO met TN finance minister D Jayakumar and sought support for taking up the GST-related issues concerning exports. 

Sakthivel said textile provides direct employment to five crore individuals and generate six crore indirect jobs.  He urged that GST rate of 5 pc should be applied uniformly across all sectors of textiles. Rafeeque Ahmed sought uniform GST to be levied on all sectors of leather with 5 pc GST instead of announced different slabs for finished, semi-finished leather, etc.

The textile industry is critical to the Indian economy. The industry provides direct employment to 4.5 crore individuals and generates six crore indirect jobs. The industry also contributes 10 per cent to manufacturing production in the country. With textile commodities holding a 7-point weightage in the Consumer Price Index (CPI), it is an essential commodity in the Indian consumption basket. Therefore, working of the textile industry has a considerable ripple effect not only on the economy, but also on the lifestyle of individuals. 

GST can transform textile in dustry into a single market with predictable tax system, enabling increased value addition, employment, and exports. This opportunity for GST to have a sustained growth for the textile sector can be achieved only through the application of a uniform low GST rate to the sector. A low GST rate of 5 percent, applied uniformly across the sector will propel domestic production, and facilitate and encourage voluntary compliance in the sector. This growth would enable India to achieve its target of generating 35 mn jobs, and attracting investment worth $200 bn by 2025, he said.