Southern Region of Federation of
Exporters organisation FIEO sought support from the Tamil Nadu Government for
the GST related issues of export sector especially Textile and Leather
While highlighting the issues of exporters Dr. A. Sakthivel, Regional
Chairman of the Southern region of FIEO said that export sector contributes immensely
for the development of the State especially creating huge employment
opportunities and hence there is a need to take care of the apprehension of
exporters that GST will affect their liquidity.
Mr. Sakthivel also suggested that SGST component of exporters can be loaded
to IGST and efficient drawback mechanism should be devised to get immediate
refund to the exporters without insisting for documentations and related
delays. IGST and SGST component
adjustment can be taken care of by the system.
A Delegation of FIEO including Mr. Sakthivel and Mr. Rafeeque Ahmed,
President, FIEO met Mr. D. Jayakumar, the state's finance minister at Chennai
recently and sought support from the State Government for the GST related
issues of export sector especially Textile and Leather sector.
While referring to the Textile sector, Mr.Sakthivel said that the sector
provides direct employment to 5 crore individuals and generates 6 crore indirect
jobs. Hence it is necessary that the
industry should be helped to have continuous growth so that more employment can
be generated. He urged that GST rate of
5% should be applied uniformly across all sectors of Textiles. Mr. Rafeeque Ahmed, while discussing issues
of Leather Sector said that uniform GST should be levied on all sectors of
leather with 5 per cent 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 6 crore
indirect jobs. The industry also contributes 10 percent 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
GST can transform textile industry 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
million jobs, and attracting investment worth USD 200 billion by 2025, M.
Thiru D. Jayakumar, Honíble
Minister while appreciating the issues said that as Textiles and Leather having
dominant role in Tamilnaduís economic growth, the State Government will provide
all possible support for enhancement of Stateís share in international trade as
well as voice the concern of these sectors in the GST Council.