The South India Hosiery Manufacturers Association (SIHMA) has requested an exemption from GST for job bills related to 'Banyan' manufacture.
The SIHMA released a press report today stating, "The 'Banyan' manufacturing business that has existed for over 100 years provides employment directly to 5 lakh people and indirectly to 3 lakh people. Over the past two years, the industry faces difficulty in manufacturing and exporting. The reason for this is that the industries are not able to accommodate employees in large numbers at one place due to the lack of structural facilities. Due to the difficulty of accommodation and transportation, employees originating from outside Tirupur don't stay in their jobs permanently. Citing this difficulty, the manufacturers search for houses in farmlands that are within a range of 50 miles from Tiruppur and build a manufacturing unit there, thus giving employment opportunities for nearby people, especially ladies who have otherwise been household helps. They are allotted the task of cutting the cloth for the 'banyan' which are later taken back to the company for stitching to finish the product. Their livelihood depends on the small sum amount they earn through this means of employment. The people who do these small jobs are often uneducated and financially backward. It is so upsetting that the Government demands GST to be paid by them."
The SIHMA report stated that these workers began to establish their work as a cottage industry along with nearby people to increase their livelihood. Since financially backward villages profited from this plan, SIMHA has requested the Government to exempt these 'Banyan' manufacturing industries to be exempted from GST.