KTR Pleads With Centre To Withdraw GST Hike On Handlooms

The Telangana government has strongly opposed the Centre's decision to increase the GST on handloom products from 5% to 12% from January 1, 2022, and said that that would deal a death blow to the handlooms and textiles sector.

Minister K T Rama Rao today addressed a lengthy letter to the Union Textiles Minister Piyush Goel requesting him to withdraw the decision as it would further worsen the living conditions of the weavers community.

He pointed out that even when 5% GST was imposed earlier, the industry had agitated against it. Since then Covid-19 had created a very difficult situation for the handloom sector over the past two years, and the GST hike decision would further deteriorate it, he claimed.

He said that the weavers creating Telangana's world-famous handloom sarees were quite worried about the hike in GST. As it is the demand for handloom products was already decreasing, and the cost of yarn and chemicals had also increased dealing a blow to the industry and resulting in the profitability already becoming less than 5%, and the forced increase in prices by 7% would result in huge losses to the sector, he claimed.

Given that, and given that 80% of the handloom sector was in the small and medium sector in the country, the decision to raise the GST to 12% might force the closure of handloom units, and also lead to the next generation leaving the industry, he opined.

KTR said that it was necessary to look at the handloom sector as part of the country's culture and tradition instead of as an industry, and withdraw the GST hike.