GST not going to affect textile business, Haryana CM

GST not going to affect textile business, Haryana CM

GST would bring traders in the integrated chain of supply of textile.

The Dollar Business Bureau

Manohar Lal Khattar, the CM of Haryana said the Goods and Services Tax (GST) is not going to adversely affect the textile business. This comes after several textile traders and unions have gone on a strike against the imposition of GST.

"Textile has been placed in the slab of 5% under the GST. Presently, there is an embedded tax of central excise duties of 3.38% and 2.8% of VAT on cotton yarn," he said.

Therefore, the 5% tax on fabric is not going to put additional burden on textile, Khattar claimed.

"Moreover, the cascading effect would be mitigated with the event of the GST and the net effective tax on fabric would be minimal," he said at a seminar on GST for members of Legislative Assembly and officials in Haryana.

The Chief Minister claimed that the annual average rate of inflation is between 6-8% and the minimal tax burden that might fall on textile is not going to hamper the sector.

Rather, GST would bring traders in the integrated chain of supply of textile, and promote accounted business and transparency, Khattar said.

"Though the process of implementing the GST was initiated long ago, it was the strong leadership and will power of Prime Minister Narendra Modi that it has become a reality after 31 years," he said.

Detailing the change that GST would bring about he said, “GST could bring about a revolutionary" change in the taxation system by amalgamating various taxes, including VAT, Central Excise and Service Tax, he said.

The chief minister called upon the administrative secretaries and department heads to be fully prepared to meet requirements of the GST.

Stressing on the need to shun tax evasion, he said, "There is a need to inspire confidence of the people in our governance and by doing so we could motivate the people towards discharging their lawful responsibilities."

"Apart from this, we should ensure that every single penny of public money is utilised in the development of the state," Khattar said.

There is a need to become more consumer friendly and priority should be given to employment oriented industries to generate jobs, he said.

The GST is a technical issue, its implementation is a challenge for the government, Khattar said.

Haryana Finance and Excise and Taxation Minister Abhimanyu said the GST Council will hold review meetings every month for the first three months after the GST is rolled out on July 1 to ensure its smooth implementation.

He said he has raised several issues concerning the state's industries before the Council.

The Dollar Business Bureau - Jun 29, 2017 12:00 IST