City-based garment and textile manufacturers are anxiously waiting for February 1 when union finance minister Nirmala Sitharaman will announce her second budget in parliament. As far as their expectations are concerned, they want immediate revamp of Goods and Service Tax (GST), simplified process to apply for funding for technological up-gradation and reduction in income tax rates.
According to Bhushan Abbi, president of Knit and Fab Cluster, Ludhiana, “Whether it's textile or garment industry, the biggest concern of every industry in today’s time is the complex system of GST, which is not only proving to be very tough to comply with but also has serious financial implications in terms of huge penalties and harsh punishments in case of non-compliance by the businessmen, even inadvertently. Therefore, it is of utmost urgency that the GST is simplified and its laws are changed in order to ensure that the innocent businessmen do not get treated at par with the habitual tax offenders.”
According to Narinder Mittal, a garment manufacturer, “We have very high expectations from this Budget and we are hopeful that the garment sector will not be ignored by the finance minister. One of the major problems being faced by the micro and small industry is the e-way bill system. Complying with it is very difficult for small-scale manufacturers like us and even a minor mistake can cost us dearly. It is impossible for the small businessmen to use this, as it also comes at a cost since we require a computer, printer, and internet for generating e-way bills and without employing a proper person for this purpose e-way bills cannot be generated by people who are not tech-savvy.
The government should understand our pain and scrap this e-way bill system, at least for the businessmen having turnover below Rs 5 crore.” Speaking to TOI, Sanjiv Sharma, a shawl manufacturer, said, “On the one side, the government is always talking of promoting ‘make in India’ products. But at the same time, to date there is no scheme with which small-time manufacturers can get government assistance to technologically upgrade themselves. The current technology up-gradation fund scheme is so complicated and it is very difficult to get any sort of assistance via this scheme. Therefore, we request the finance minister to announce a new and simpler scheme wherein needy businessmen can get prompt funding for technology up-gradation.”
Source: Times of India
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