‘15 lakh may lose jobs in handloom sector due to increase in GST’

Telangana Industries Minister K T Rama Rao has expressed fears that 15 lakh people, working in the handloom sector in the state would lose their jobs due to the recent increase in the Goods and Services Tax (GST) on textiles and handloom sector, from five per cent to 12 per cent.

Rao has stated this in a letter to Union Finance Minister Nirmala Sitaram ahead of the GST Council meeting to be held today and has appealed to her to immediately withdraw the enhancement of GST on textiles and handlooms.

Rao said that the increase in the GST on handloom will put an additional burden on the middle-income groups, which generally buy garments within a budget of Rs 1000. He pointed out that the textile and handloom sector provide the second highest employment in the country and the increase in the GST will impact around 85 per cent of the handloom and textile production.

He added that already the cost of raw materials, yarn, chemicals, packaging material and transportation have gone up post-COVID.

The weavers’ community has staged protests demanding the waiving of the GST by the Centre, but the Centre has ignored their demands, he said, adding that Telangana will stand by the weavers in their fight against the enhanced GST.