GST ON Indian Textiles

It seems Government of India has decided to not reduce the GST rate on textiles products, in spite of memorandums and agitations by traders and weavers. The new GST rates will commence from 01-01-2022, a new environment for Indian Textiles?
From the prospect of our community's weavers we need to understand which will be affected the most Powerloom or Handloom?
The Powerloom Industry is the major contributor to Indian Textile industry as 62% of the textiles production in India is done on powerlooms. Indian Powerloom Industry is equipped with 2.43 million registered looms producing 54,000 sq. mtr fabrics and accounting for 57.45 lakhs number of direct & indirect employment. 
In comparison handlooms production and sales is insignificant, we are aware that powerloom sector comprises of two groups: textile mills and unorganized weaving factories, our community's weavers come under the second category, and majority taxes collected by government is from such big textiles mills.
Could it be that this is the reason why government is adamant, for not reducing the rate of GST for textiles?
The Indian weaver or any other craftsman for that matter is a simple individual fully conversant about his craft and craftsmanship, knowing what designs to select, what fabric to choose, is fully immersed in The Indian weaver or any other craftsman for that matter is a simple individual fully conversant about his craft and craftsmanship, knowing what designs to select, what fabric to choose, is fully immersed in his world of weaving and workmanship. 
Bring him out of this familiar world and he flounders like a fish out of the water.
Handlooms Weavers, already burdened with his pitiable state of affairs in eking out a decent living, has with the introduction of the GST become subject to additional woes that threaten to shake the very foundations of his life and livelihood.
The Handloom Industry received its massive boost in 2015 when the Prime minister announced Handloom Day and declared it would be celebrated annually since. A slew of measures to promote handlooms, schemes for their effective marketing, and buoyed up spirits augured well for a start.
Unfortunately the product process system in textiles has not been studied in depth. e.g. fabric yarn that is made at a place, could be dyed at a second place, woven at a third, printing taking place at a fourth and so on. At every stage there would be a GST that would be attracted and despite all these stages being the start to finish for the same single product, the multiple GST that the stages attract, pile up to make the product much costlier than before the GST regime.
The weights of products in the textile markets would differ based upon the fiber material used, their make, quality etc. Naturally the GST would impose slightly higher prices for handloom products that are mostly made from natural fibers, could shift the market towards cheaper artificial fibers. Further, price elasticity of low and high value-added products would be affected badly, stressed by ‘fake’ handloom products that are replicated with inferior materials in the name of handlooms.
A definition of hand-woven and hand-made products in the GST Act would definitely be of great help to the sector as a start, since most handloom product sales are intra-State, and State governments could surely exempt them from GST.
In such a scenario with so many points to justify, the consideration of withdrawal of GST for the handloom weavers could provide that moral boost and impetus that is much needed to alleviate the hopelessness and despair already written on the face of the humble handloom weaver.
"In this world nothing can be said to be certain, except death and taxes."
GaviRangappa S P
Devanga's Vidhana
https://t.me/joinchat/T9PZE7wMJss2eol0
https://www.facebook.com/groups/115655385522020/?ref=share
https://www.facebook.com/vidhanadevangas/
Bengaluru.

Comments

Post a Comment

Popular posts from this blog

Bengaluru_ Devanga Sangha's Centenary Year

Image
.On behalf of the members of Devanga Sangha, Devanga Hostel Road Bengaluru, I wish to express my sincere gratitude to our founding members for devoting their time and resources for establishing Devanga Sangha Bengaluru in the year 1923/24. On 12th February 1924 Government of then Mysore officially recognized Devanga Sangha. For the past hundred years many members and donors have contributed immensely for Sangha's development and progress. With great reverence I salute each one of them. Since the beginning, Devanga Sangha has been a centre for education, religious and social enrichment for successive generations of members, and I hope it would continue for another hundred years. It's my sincere appeal to it's management committee to declare 12th of February every year as Devanga Sangha's founders day and install their portraits for member's appreciation. If you think in terms of a year, plant a seed; if in terms of ten years, plant trees; if in terms of 100 years, te...
Read more

Exploring the Lives of Sri Devala Maharishi and Sri Devara Dasimayya: Differences and Similarities.

Image
Sri Devala Maharishi and Sri Devara Dasimayya are revered figures in Sanatan spirituality and literature, known for their contributions to the devotional and philosophical traditions of the country. While both individuals lived during different historical periods and hailed from distinct cultural backgrounds, their teachings and legacies continue to inspire millions of devangas and weavers to this day.  In this article, I would like to delve into the lives of Sri Devala Maharishi and Sri Devara Dasimayya, highlighting their differences and similarities. 1. Historical Background: 1.Sri Devala Maharishi is an ancient sage mentioned in Hindu scriptures such as the Rigveda and the Mahabharata.  His origin is attributed to the creation of Devanga community, and he is considered one of the revered sages of ancient India and is believed to have contributed to the compilation and transmission of Vedic knowledge. 2.Sri Devara Dasimayya was a 10th-century saint and poet who ...
Read more

Basketball's Rise in Cubbonpet Bengaluru.

Image
The founder of basketball was late Dr. James Naismith, an Canadian physical education instructor. He invented the game in 1891 while working at the YMCA Training School in Springfield, Massachusetts, USA. Naismith was tasked with creating a new indoor game to keep his students physically active during the winter months. He developed the basic rules of basketball and used a soccer ball and two peach baskets as goals. The first official game of basketball was played on December 21, 1891, and it quickly gained popularity, eventually evolving into the global sport we know today. Basketball, a dynamic and fast-paced sport, was introduced to India in the early 20th century, and its journey in the country reflects a blend of cultural adaptation, steady progress, and growing popularity. Over the decades, the sport has evolved from a recreational activity to a competitive discipline with a promising future.  This article explores the history, growth, and challenges o...
Read more