For the benefit of Indian textile sector under the new GST regime the Federation of Gujarat Weavers Welfare Association (FOGWWA) has demanded the implementation of a fiber policy for all types of fibers to attract the same duty.

A memorandum was submitted to district collector Mahendra Patel with a slew of demands, including implementation of fiber policy, refund of accumulated GST credit, no GST on all types of job work required to manufacture grey fabric by the powerloom weavers, lowering GST on yarn at 5 per cent or 12 per cent and imposing extra duty on the imported fabrics.

FOGWWA office-bearers say that the inverted duty structure will increase the cost of fabric. The weaving job-work is done by the small units. Around 70 per cent of the units in the decentralized textile sector are working on job-work. The 18 per cent GST on job-work will force the small units to down the shutters as the cost of fabric will increase compared to the fabric manufactured in composite units. A huge number of powerloom units are engaged in job-work, there will be high job losses in the industry.

President of FOGWWA, Ashok Jirawala states they are not opposed to GST, but there is a need for simplification of tax in the sector. There should be a uniform duty in textiles and the government should not treat the MMF sector as a step child. Jariwala adds, with just few days to go, the sector needs clarity on GST rates. The industry can't survive with 18 per cent and 5 per cent rates.