Form GST anti-profiteering authority, weavers demand in Surat

Weavers in Surat want the formation of an Anti-Profiteering Authority under Goods and Services Tax (GST). They claimed that their businesses are not passing the benefits of a reduced tax on them in absence of such an authority, thereby making their units unviable.

As the GST regime got rolled out on July 1, 2017, polyester yarn was subjected to 18% GST. Later, after a series of representations, the tax was reduced to 12%. Spinners manufacture yarns and sell them to weavers, who claim that the benefit of reduced tax has not been passed on to them. “There is a provision in GST that if the tax burden on the product is lowered, the seller has to pass on the benefit to the buyer. On the other hand, the cost of yarn has risen by Rs 100-150 per kg or about 35% in past four months. Most of the rise is in just over a month,” said Mayur Golwala, committee member of Federation of Gujarat Weavers Association (FOGWA).

The central government had earlier categorically stated that if the benefit of reduced taxation is not passed on to the buyer, actions can be taken against the sellers under Anti Profiteering Provisions. But for that Anti Profiteering Authority needs to be created, which is not created so far.