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The Southern India Mills’ Association

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Anti-profiteering panel seeks yarn price hike details from weavers

Surat: The two-member anti-profiteering screening committee in the state formed under the Goods and Services Tax (GST) laws has sought documentary evidences, including bills, from powerloom weaving associations in the city to prove their claims about phenomenal increase in yarn prices.
The anti-profiteering screening committee, which is headed by GST commissioner from Central Government, Sunil Kumar Singh, and additional sales tax commissioner, Gujarat, Supreet Singh Gulati, is believed to have asked leaders of powerloom sector to submit details of yarn price hike along with invoice details.
The action has come after powerloom leaders had complained about artificial price hike by yarn spinners, even as GST rates have been brought down from 18 per cent to 12 per cent.
Sources informed that the anti-profiteering screening committee has sought the bills and other details from Pandesara Weavers Cooperative Society Limited and Sachin Cooperative Industrial Society Limited to validate the claim on hike in yarn prices by the spinners.
Powerloom weavers stated that since October 2017 till May 2018, the yarn spinners have increased yarn prices by almost 35 per cent. This despite the fact that the GST Council has reduced GST rates on yarn from 18 per cent to 12 per cent. The yarn spinners, instead of reducing the prices, have gone on to increase the yarn prices.
“We will be submitting all the invoice and original bills issued by the yarn spinners to the anti-profiteering screening committee for a final decision. The yarn spinners charged Rs118 per kilogram on the yarn priced at Rs100 by adding 18 per cent GST. When the GST was reduced to 12 per cent, the same yarn priced at Rs118 was sold with 12 per cent GST. However, we have demanded that the difference of 6 per cent on GST’s reduction be refunded by the yarn spinners,” Pandesara Weavers Cooperative Society Limited president Ashish Gujarati said.