The Zippers Association of India has urged the GST Council to reduce the tax on zippers and slide fasteners from the current 18 percent to 12 percent.
The industry players state that zippers and slide fasteners are an integral part of the garment products and the sector should not be burdened with such a big tariff.
Around 95 percent of zipper manufacturers fall under the MSME category and 18 per cent Gst affects their businesses.
The garment accessory industry is already facing a tough phase from a very long time. Over 27 zipper manufacturing units have been closed since the implementation of the new tax regime. The industry employs over one lakh workers.
The Zippers Association of India state that lower tariff rates will give a competitive edge to the country’s textile and apparel industry over its competitors.
According to the trade association, local manufacturing of zippers not only reduces the lead time but also assistsexporters in increasing their businesses. In case, the apparel exporters have to import accessories due to higher rates within India, it’ll impact both the sectors.
GL Malik, Director, Malik Zippers (Delhi) told Apparel Resources, “The hike in prices of garment accessories like zipper due to highertax is not only affecting us but also the garment manufacturers. This pushes exporters to look for an alternate like China to curb overall garment production cost.”
He further added that the introduction of 18 percent GST on zippers has slowed down the market.
“Being a manufacturer I appreciate the initiative taken by the association and if the GST gets reduced from 18 percent to 12 percent then it will help us grow our businesses,”underlines Malik.