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Traders Demand Nil GST on Fabrics

Zero Percent GST Demanded by Textile Traders

Minister for Finance, Arun Jaitley has said the GST Council would not consider decreasing the tax rate for fabrics to nil rate, as according to him, organized traders and businessmen along with unorganised sellers have not been affected by GST.

He further explains that the demand made by the textile manufacturers and traders is not viable since by acquiescing to a nil tax rate on fabrics, the textile businessmen would not be able to avail the benefits of input tax credit. Mr Jaitley made this statement in response to the strikes made by textile manufacturers throughout the country protesting the levy of 5% GST on the textiles sector.

In the meantime, GSTN has assured of the infallibility of the GST portal that there is “not even the slightest possibility” of the data present on the portal getting mixed up of one taxpayer’s with another. Mr. Navin Kumar also allayed fears of such an event occurring stating that enough safeguards to prevent such a mix up from taking place have been placed.

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