The small and medium sector will receive GST refunds within 30 days. However, powerloom weavers are not satisfied and want revocation of the amended notification on GST refund lapse issued in 2017. They say their blocked accumulated input tax credit (ITC) should be released in full. A notification was on June 25, 2017, restricting refund of accumulated input tax credit in case of manufacturers of various qualities of grey fabrics, who otherwise were eligible for refund under GST. After representation by weavers, the notification was amended on June 28, 2017, allowing refund from August 1, 2018, but with condition that all the accumulated ITC up to July 31, 2018 will lapse. This was recently set aside by the high court.

The powerloom industry wants the earlier notification by which ITC refund lapses, to be revoked and feels this will help it get the full pending refund of Rs 1,400 crores to boost modernization in the industry. Medium and small units in the textile sector are the backbone of the textile industry. Release of ITC refunds within 30 days is a bold decision.

India has announced a slew of measures to boost the textile sector of the Indian economy.