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GST knocks down zipper units as industry feels the heat

The zipper industry in India wants tax slab to be reduced to 12 per cent from the existing 18 per cent. It says, zippers and slide fasteners are part of the textile industry and should not be burdened with high tariffs. The industry provides employment to about one lakh workers mainly women.

Almost 80 per cent of all zippers are used in the textile industry and more than 95 per cent of the inputs used as raw materials in their manufacture are textile items, taxed at 12 per cent. Almost 27 zipper units have closed down since GST came into force.

Zippers are an integral part of the textile and apparel industry. They are used in manufacturing readymade garments, woolen products, hosiery products, jackets, gloves, windcheaters and covers of pillows, mattresses, quilts and blankets etc. They are mostly made from textile materials like polyester or monofilament yarn, thread, tape etc.

The industry says lower tariffs will provide the fastener as well as the apparel export industry a competitive edge in the existing quota free world. An upgraded zipper industry can shorten delivery times, boost export orders and enhance brand reputation of the garment export industry.

 
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