TG textile trade seeks GST rate rejig, voices concerns on e-com to Union Minister Manjhi 

textile trade

Textile trade in Telangana has highlighted the need for rationalisation of Goods and Services Tax (GST) on all textile products, advisory to banks on working capital and action against e-commerce platforms and retail chains resorting to unfair trade practices.

“One of the largest employment generators, India’s textile and apparel industry is undergoing a period of severe stress and in need of intervention and support measures,” Telangana Federation of Textile Associations’ (TSFTA) president Ammanabolu Prakash said in a memorandum to Union Minister of MSMEs Jitan Ram Manjhi.

In the memorandum, submitted on behalf of TSFTA and Telangana State Federation of Chambers of Commerce & Trade (TSFCCT), during the visit of the Minister to Hyderabad, Mr. Prakash appealed for rationalisation of GST on all textile products to a uniform 5% to ensure affordability, simplification of process and ease of compliance.

Banks’ reluctance to extend working capital to small traders and textile units despite various credit guarantee schemes in operation, need to simplify loan disbursement under CGTMSE and ensuring timely credit to retail traders as well as manufacturers; and grant of export incentives and training for textile MSMEs eyeing global market were some of the other issues raised in the memorandum.

The trade also raised the issue of e-commerce platforms and organised retail chains resorting to deep discounts and unfair trade practices. Frame policies to ensure fair competition and protect offline retail and traditional traders, the two bodies said.

They also wanted wholesale and retail traders to be considered to avail benefits under all schemes for micro, small and medium enterprises (MSME) such as subsidy, incentives and procurement related than just priority sector lending. Levying subsidised power tariffs and need for infrastructural upgrade at textile clusters also figured in the memorandum.

MSME Ministry’s support is crucial for sustaining livelihoods and ensuring continued contribution of this sector to the national economy, Mr. Prakash said.