Textile industry seeks Centre’s help: government to launch new scheme in 3 months

The announcement came during his visit to Surat, where metallic zari manufacturers and textile industry representatives raised concerns over GST-related issues, stalled input tax credit (ITC) refunds and rising yarn prices.

Metallic zari manufacturers told the minister that the GST rate on their products had been reduced from 12% to 5%, but ITC refunds had stopped.

Since manufacturers pay higher GST on raw materials while the finished product attracts a lower rate, the non-refund of excess tax is causing them a loss of ₹7 per kg, they said.

Industry representatives expressed concern that despite repeated representations to local authorities and the state secretariat, the issue had not been taken up by the GST Council.

Textile industry representatives also flagged what they described as arbitrary increases in yarn prices by spinners. They said frequent price hikes were putting weavers and textile processors under financial pressure.