Most handloom weavers outside GST purview: Centre

PNS|Hyderabad

Even though the TRS government has demanded to withdraw the GST imposed on handlooms, the Centre is in no mood to do so. Apart from stating that the GST on handlooms is a “settled issue,” the Centre thinks that the “TRS is creating ruckus unnecessarily.”

“Most handloom weavers are small, outside the purview of the GST. Many people used the garment/handloom business as a ‘front’ to avoid taxes during the pre-GST regime. The GST checks tax evasion,” highly placed sources said. The turnover of most weavers doesn’t exceed Rs 20 lakh and they don’t even require registration under GST.

“The lowest slab of five per cent helps large units claim Input Tax Credit for their business. It helps in the formalisation of the sector, gives recognition and makes it easier to get loans,” official sources added. In December 2021, many states demanded that the GST on handlooms should not be hiked to 12 per cent and accordingly, no such change took place. However, the TRS has continued to take up the issue and took it to a new high during the Munugode campaign by launching a postcard campaign and online petitions.