Business

Textile Mills In Punjab Bleeding As Anomalies Continue under GST, Informs NITMA

The textile sector in Punjab comprising of a fair share of the Micro, Small & Medium Enterprises (MSMEs) is bearing severe implications due to anomalies of the Goods and Services Tax (GST) regime, according to industry sources.

Executive Member of the Northern India Textile Mills Association (NITMA) and Director at Aarti international Limited Rajeev Mittal said that like other sectors, even the textile sector of the country also greeted GST, but there are fears that the industry is beginning to face reality.

He said that the entire textile value chain system is being hampered due to the improper structures of IGST under the GST regime.

He said that while big industrial players continue to play unaffected, the micro and small enterprises are beginning to feel the pinch because they are finding it difficult to survive market competition because of pending tax credits.

The sector was grappling with the after effects of the demonetisation drive which was followed by GST.

There are several representations being sent to the government and the sector is in constant dialogue with the authorities demanding redressal of the issue, but a positive sign is yet to come, he said.

Earlier, Punjab Finance Minister Manpreet Singh Badal had raised similar concerns with regard to IGST and assured that the government will take it up with the GST Council.