SURAT: Powerloom weavershave written to the National Anti-Profiteering Authority to take strict action against yarn spinners for artificially increasing prices by almost 35% and demanded that they be asked to repay the difference amount of GST reduced from 18% to 12% to them. Powerloom weavers have stated that the spinners were selling yarn at Rs 118 per kg when GST rate was 18%. When GST rate was slashed from 18% to 12%, the spinners started calculating the per kilogram price at Rs118 plus 12% GST. At every kilogram of yarn purchased from the spinners, weavers have to be genuinely refunded the difference of Rs 6 as the GST rate has been reduced from 18% to 12%.
Mayur Golwala, leader of the powerloom sector, told TOI, “The price of certain quality of yarns priced at Rs 89 to Rs 240 per kg has increased to Rs 111 to Rs 340 per kg. This, despite the fact that the GST rate has been reduced by the government. However, powerloom weavers have the right to ask for refund of the difference amount. We have written to the National Anti-Profiteering Authority for justice.”
Golwala added, “We have urged the National Anti-Profiteering Authority to immediately take cognisance of the artificial price hike by the yarn spinners. In the past couple of months, yarn prices have shot up by almost 35%. This has resulted in drastic reduction of grey fabric production as weavers are operating the units in single shift of eight hours.”