A delegation of textile trade leaders from power loom sector, textile traders, and Federation of Indian Art Silk Weaving Industry (FIASWI) discussed input tax credit (ITC) with Union Finance Minister Piyush Goyal. There was a confusion prevailing in the textile sector over the ITC.
Input credit means that at the time of paying tax on output, one can reduce the tax that has already been paid on inputs and pay the balance amount. Finance Minister through a video conference held on August 2 assured them that government has no intentions to block the credit, but they are just blocking refund on the amount before July 31.
Powerloom and textile industry heaved a sigh of relief after GST Council, in its latest meeting, gave its consent for refund of ITC, accumulated due to inverted duty structure in respect of certain textile goods.
On the other hand, industrialists from knitwear hub of India Tirupur are anticipating that Indo-Pacific economic corridor would do wonders for textile industry to explore market opportunities abroad as it would provide better economic connectivity.
At least 12 countries including India, USA, Australia, Indonesia, Japan, and New Zealand are expected to be members of the treaty. Under the treaty, participating countries need to provide conducive trade environment to each other and investment for infrastructure development.
