Tirupur textile hub says 18% rate too high

18 per cent rate would affect the hosiery sector badly, says A C Eswaran

The textile hub of Tirupur in Tamil Nadu is worried about the 18 per cent Goods and Services Tax (GST) for different segments in the production chain. It says this will put pressure on working capital of job work units and that 20-30 per cent of these might have to close down. The Tirupur textile industry does business worth at least Rs 50,000 crore every year, export and domestic. And, employes over a million people.

Raja M Shanmugham, president, Tirupur Exporters Association, says at least 80 per cent of units in Tirupur are dependent on job work on the multiple stages