GST: Dattatreya to raise issues of textile, beedi industries with Jaitley

Union Minister said he will raise the issues with Jaitley tomorrow

Union minister Bandaru Dattatreya on Sunday said he will take up the issues raised by textile traders and beedi industry in Telangana over the imposition of the GST with Finance Minister Arun Jaitley tomorrow.

"I will discuss the matter with Telangana government and tomorrow I am also meeting Arun Jaitleyji and apprise him on the issues raised by textile and beedi sectors," Dattatreya, the Union Minister of State for Labour and Employment, told reporters here.

Representatives of Telangana State Federation of Textile Associations, and cloth merchants associations submitted memorandums to the minister against the imposition of the GST on textiles and sought his intervention to urge the Centre to exempt the textiles industry from the GST.

The Garments Manufacturer and Wholesalers Associations while welcoming implementation of the GST said there is need for uniform policy of GST at 5 per cent for all ready-made garments and for simplifying the HSN codes for garments.

"I will request Jaitleyji to positively take into account their issues," Dattatreya said adding he will also apprise the Union Finance Minister on the 28 per cent GST tax slab on beedi manufacturing industry.

He said the Telangana government is also discussing with the Centre to roll back 28 per cent tax on beedis sector.

"Imposition of 18 per cent GST on beedi leaves and 28 per cent on beedi sector ... It will be tough... In Telangana, large number of women force are engaged in this sector and it may impact beedi workers," said Dattatreya.

In this regard, a tripartite meeting of trade unions, employers and government officials will be held on July 17 at Delhi, after which they will also meet with officials of the Finance ministry, he said.

Dattatreya said the RBI has agreed to release Rs 1,700 crore money tomorrow for disbursement to farmers in Telangana as part of the first phase for kharif season.

Reacting to a query, Dattatreya reiterated that due to GST, employment generation will improve and one lakh jobs, particularly in IT and IT enabled services will be created in the coming months.