Surat: The finance and textile ministries of the Government of India have turned down the request to allow the refund of input tax credit (ITC) to the power loom weaving sector.
This was made clear at a meeting held with the Synthetic and Rayon Textile Export Promotion Council (SRTEPC) on Wednesday. SRTEPC chairman Narain Agarwal had called upon finance minister Piyush Goyal and textile minister Smriti Irani in New Delhi to discuss important issues concerning the man-made fibre (MMF) sector.
In a one-on-one meeting, Agarwal said both the ministers categorically refused allowing refund of the ITC to the power loom weaving sector and stated that the accumulation of ITC in other segments, including textile processing, embroidery and yarn spinning will be released soon.
Talking to TOI, Agarwal said, “The refund of accumulated credit in the weaving sector has not been accepted by the ministers. The government officers were also asked to examine the rebate of duty on electricity levied by state governments, which works out to around Rs 3 per metre of fabric.”
Agarwal added, “Rebate of taxes on fuel levied by state governments, which is about 0.66%, will be examined for further consideration. Also, the government has assured that they are studying the issue regarding the increase of effective duty on imports of cheap fabric.” tnn