Handloom, textile industries hanging by a thread

‘5% GST on yarn used by handloom weavers runs contrary to historical decision’

The life of weavers and artisans engaged in handloom and textile industry in Krishna district is hanging by a thread with imposition of five per cent Good and Service Tax (GST) on yarn and dyeing materials.

At a time when several handloom weavers’ cooperative societies were on the brink of downing the shutters and suicides by weavers were rampant, the GST has come as a bane for the weavers and artisans (Kalamkari).

Weavers and Kalamkari artisans are up in arms to protest the GST on handloom and textile products by intensifying their protest across the district’s weavers’ pockets - Machilipatnam, Pedana, Kappaladoddi, Polavaram, Kaja and Ghantasala – before entering into the GST regime from July 1.

Since Independence, handloom and textile sectors enjoyed the privilege of being non-taxable industries. The government’s 2001 decision to impose 9.2 per cent Value Added Tax on these sectors was withdrawn in 2004.

Former chief officer, National Institute of Micro Small and Medium Enterprises, Hyderabad, Akurathi Venkateswara Rao, puts it over phone: “In 1948, the National Planning Board under the chairmanship of Prime Minister Jawaharlal Nehru took an irrevocable decision ‘not to levy any kind of tax’ by government on yarn and cloth produced by the handloom industry in India at any time in future.”

“The decision to levy 5% GST on yarn used by handloom weavers runs contrary to the historical decision,” said Mr. Venkateswara Rao, an expert on handloom weaving.

At least 12 weavers committed suicide in Pedana and Guduru mandals since 2010, sending a signal of crisis in the industry that had been struggling to flourish.

More than 12,000 weavers, including 7,000 associated with the cooperative societies, would be directly affected by the GST in Krishna district, Handlooms Department Assistant

Director Ch. Lakshmana Rao told The Hindu.

The price of the final product would be very high owing to GST on the yarn industry, whose monthly turnover crossed Rs. 4 crore, he said.

Of late, not less than 30,000 workers are directly involved in the handloom sector while at least 5,000 artisans are eking out livelihood in the Kalamkari industry in Pedana which had also been brought under the GST.

Ironically, the 35 weavers’ cooperative societies had been struggling to sell the product stored in their godowns.

Source: http://www.thehindu.com/todays-paper/tp-national/tp-karnataka/handloom-textile-industries-hanging-by-a-thread/article19152240.ece