More than 40 thousands power loom weaving of the city are upset as long awaiting input tax credit(ITC) credit issue remain unsolved in 31st GST council meeting held in delhi last week. Weavers belief that, it goes to be a large loss to power loom weavers as the collected ITC credit is more than 600 crore.
Earlier, the central govt. has issued the notification which said that unutilized ITC balance after making payments of GST for the month of July-2018, will lapse. The weavers are arguing that they have not passed on the credit accumulation to buyers and has treated it as a part of aseets. If government will not allow to carry forward the accumulated credit, it will be a big loss to the industry and the weavers will not be able to expand and mordernize their units.
After several reprentation made by local industry, In the 28th GST Council meeting, it was once decided to allow the ITC to power loom weaving sector. However, the weavers have been unsatisfied when the inclusion of the word ‘shall lapse’ within the revised notification was issued by the central govt. The word ‘shall lapse’ signifies that the weavers who already had paid GST on enter products and services and are prone to get credit won’t be able to utilize or lift it ahead within the books of account
