Power loom weavers, who started getting refund of the input tax credit (ITC) worth Rs. 450 cr beginning July 27 following approval by the Goods and Service Tax (GST) Council at its 28th meeting in New Delhi in July, are confident that the step will ease the payment crisis in the sector and will boost capital investment under the Technology Upgradation Fund (TUF) scheme.
The power loom sector has been petitioning the GST authorities and the Indian Government for allowing the refund on ITC. Many small weaving units had closed down by selling more than a lakh power loom machines in scrap in the last one year, rendering more than 40,000 workers jobless, according to a report.
