Confederation of All India Traders requested for deferment of implementation of levy of 12% GST on Textiles. As according to them increase in GST Rate on Textile is illogical and beyond the canon of GST tax structure particularly at a time when the domestic trade of the Country is on the verge of recovery from the colllosal damage caused due to last two spells of the covid. Read Full Text of the Representation
“Vvapar Bhawan’
925/1, Naiwala, Karol Bagh, New Delhi.110005.
Phone: .91-11-45032664 Telefax: 91-11-45032665
E-mail: [email protected] website: www.cait.in
27th December, 2021
Ref. No.: 3321/1/50
Smt Nirmala Sitharaman
Hon’ble Minister for Finance
Government of India
New Delhi
Dear Smt Nirmala Sitharaman Ji,
Sub : Levy of 12% GST on Textiles : Request for deferment of implementation.
We invoke your kind and immediate attention towards Government Notification No. 14/2017 dated 18/11/2017 increasing the rate of tax from 5% to 12%. on textiles and footwear which is illogical and beyond the canon of GST tax structure particularly at a time when the domestic trade of the Country is on the verge of recovery from the colllosal damage caused due to last two spells of the covid. It is noteworthy to mention that GST collection across the Country is increasing every month and as such any increase in tax rates without consulting the stakeholders will run contrary to the ease of doing business call of Prime Minister Shri Narendra Modi.
Therefore, we shall request you to defer the implementation of tax rate hike for certain period and meanwhile constitute a ” task force’ under the Chairmanship of Chairman, Central Board of Indirect Taxes comprising of representatives of trade and senior officials of the Government to discus the issue at length and arrive at a consensus.
There was no tax on Textile/Fabrics for a number of years. Bringing the textile Industry again under tax net itself was a big blow to the entire textile Industry. The trade associations across India led by CAIT had made representations immediately after the last GST Council meeting wherein it was proposed to correct the inverted duty structure on textile. It was requested by the trade and industry that the Status quo be maintained @ 5% and the rate be reduced from 12% to 5% wherever applicable. This will not only add to the financial burden on end user but will also affect small business men badly and will encourage evasion of tax and various malpractices. Further, the goods which are lying in stock of the businessmen and sold on MRP the additional burden of 7% will be on the businessmen. This increase in tax rate will not only hamper the domestic trade it will affect the exports adversely. Already the textile industry is not at a competent status with Countries like Vietnam, Indonesia, Bangladesh and China. On the one hand the Government talks about Make In India and Atmanirbhar Bharat on the other hand levy such high taxes creating an atmosphere of uncertainty and gloom.
2. Extension of Income Tax FRetum Filing Date : The new portal of Income Tax is suffering from various glitches and filing of one return is taking more than couple of hours. Further, various genuine issues which are being faced by the tax practitioners like the staff of the tax practitioners are to be trained to understand the new portal and its utilities. Not many professionals are well versed with the frequent changes being made on the portal, Very less time has been provided after the introduction of the new portal,frequent changes in various Forms and their utility is resulting into duplication of work, due to which lot of time gets wasted, many technical glitches being faced on the portal due to which lot of time is wasted, overlapping of dates for various compliances like due date of filing of Income tax returns, GSTR 9 , GSTR-9C is another complex issue.
Under such circumstances considering the hardships and practical difficulties being faced by the professionals and in the interest of the businessmen who are dependent upon the tax professionals for filing their returns, it is requested that the due dates of filing of Income Tax returns may kindly be extended to a later date.
We are sure that it will receive your kind and immediate attention and you will be kind in accepting our humble suggestion.
Tank You. With kind regards
Truly yours
Praveen Khandelwal
National Secretary General
Confederation of All India Traders
