Hyderabad (Telangana) [India], December 19 (ANI): Information Technology and Industries minister KT Rama Rao on Sunday appealed to the central government to withdraw plans of revising GST from 5 to 12 per cent on textiles and Handlooms sector, stating that it would inversely affect the handlooms industry.

In a letter to Union Textiles Minister Piyush Goyal, KTR has appealed to withdraw the plans of revising GST from 5 to 12 per cent on textiles and Handlooms sector from January 1, 2022.

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The IT minister said that for the past two years, the textiles, especially the handlooms sector was going through a tough phase due to the Covid pandemic impact.

"At this juncture, revising the GST from the current 5 per cent to 12 per cent would serve as a death blow to the industry," he said in his letter.

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Rao further explained that after the agriculture sector, the textiles and handlooms sector provide the highest employment in the country. Considering the current scenario, the need of the hour was to extend additional advantages and incentives to the sector.

"The decision to increase GST on textiles and handlooms is not wise. In the country's history, taxes levied on handlooms was strongly opposed by the textiles and handlooms sector across the country," he reminded.

"The current decision to impose an additional seven per cent GST on the handlooms would leave the sector crippled. Telangana produces world-class handlooms and weavers are worried a lot due to the Centre's decision to increase GST," the minister said. (ANI)

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