The Silk Association of India has welcomed the Central Government’s decision to defer the hike in GST on silk textile goods proposed to be implemented from January 1, 2022.
“The decision of maintaining the status quo of 5 per cent GST will boost our morale and go a long way in maintaining the momentum of the silk industry’s progress hard earned during the recent times”, said the Silk Association of India in a statement here on Saturday.
The GST Council met on December 31, 2021, and decided to defer the impending GST hike to 12 per cent. “Dropping the proposal of GST hike once and for all will enable the silk industry to recover from the present jolt of COVID-19 and other adverse conditions”, said Association’s Secretary M. Ramachandra Gowda in a statement.
The Association, in a statement on December 30, 2021, had expressed concern over the possible impact of the GST hike and said it would creative a negative impact on the textile industry. The hike would lead to closure of many factories, outlets and other shops, which will have a cascading effect on all other activities including those carried out by the grassroot producers.
“Increasing the GST from 5 per cent to 12 per cent would indirectly prompt the small and medium scale players to pass it on to the consumers. On the other hand, they fail to compete with heavyweights of the industry and face natural closure”, the statement said.
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