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The Southern India Mills’ Association

Committed to Foster the Growth of the Textile Industry

FOSTTA oppose hike in job charges by textile processors

Surat: The Federation of Surat Textile Traders Association (FOSTTA) has threatened to challenge the decision of the South Gujarat Textile Processors’ Association (SGTPA) before the anti-profiteering and the Competition Commission of India (CCI) for illegally increasing the job charges in the range of Rs 2 to Rs 4 per meter on the finished fabrics on Wednesday.
Two days ago, the SGTPA had announced that the textile processors have unanimously decided to to revise the job charge rates with an increase of 15% on the finished fabrics. The hike was announced due to the increase in the input raw material costs by almost 25% in chemicals, dyes, coal and workers’ wages.
FOSTTA office-bearers stated that the textile processors have been enjoying input tax credit (ITC) on the 5% GST on the job work of the finished fabrics. The benefit of ITC is not extended to the powerloom weavers and the traders. Until now, the textile processors have been given ITC refund to the tune of Rs 350 crore. With such huge benefits under GST, the increase in job charges is totally illegal.
“Textile processors have ganged up to increase the job charges, which is against the anti-profiteering standards set by the government. At present, the textile business is down by almost 40%,” said secretary of FOSTTA, Champalal Bothra.
He added, “We have urged the textile traders to reject the decision of textile processors and that they should come on the table to discuss the hike in the job charges with valid reasons.”