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Handloom sector in Telangana on verge of crisis due to GST imposition

Posted On: August 16th, 2017 10:29 AM, IST By Super User
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MAHBUBNAGAR: The implementation of GST (Goods and Service Tax) has affected the handloom sector of Mahbubnagar district in Telangana.

The sector which is already struggling to keep its existence intact is now on the verge of a crisis as GST imposes more amount of tax on the handloom products. The raw material of the handloom products has enjoyed zero taxes before the enforcement of the new tax regime. However, they have now been brought under the tax net with the rollout of GST last month.

According to the new tax structure, cotton and silk would attract five per cent tax and jari would attract 5 per cent tax. The dyes used in the manufacturing of the clothes would attract another five per cent tax.

The imposition of the tax has now prompted the handloom and weaver associations to express their concerns over the existence of the entire sector in the district.

According to the Geotagging survey done by the authorities concerned, the four newly-created districts viz. Mahbubnagar, Jogulamba Gadwal, Wanaparthy and Nagar Kurnool have 4,000 weavers families. Of this, about 3,300 families have their own handloom machines. Around 15,000 people are seeking out their livelihood by weaving clothes. Gadwal saree
made by these weavers occupies international significance.

The weavers make Seiko, Turning, Paitani and Boota sarees with Gadwal saree brand name. The families with handloom make around 9,900 sarees every month.

Commenting on the issue, Rajoli weavers association president Dothre Narayana demanded the Union government immediately withdraw the tax from the handloom raw material and also which is manufacturing from our products.

"It's more burden on the weavers dependable families. The customers may not be shown interest to bear, there has been no tax on the handloom sector for the last 15 years. But the centre has imposed it now. It will only further cripple the lives of the weavers. The move will result in the closure of non-performing units," he said.

Source: http://www.newindianexpress.com/states/telangana/2017/aug/07/handloom-sector-in-telangana-on-verge-of-crisis-due-to-gst-imposition-1639706.html

Last modified on: March 02nd, 2024 03:13 AM, EST
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