Lok Sabha Question No. 1122 (UNSTARRED), answered on 2023-02-08
Subject: Indian Institute of Handlooms
Ministry: TEXTILES
Asked by: Kavitha Malothu, Gaddam Ranjith Reddy, Venkatesh Netha Borlakunta

## INDIAN INSTITUTE OF HANDLOOMS

## 1122. SHRIMATI KAVITHA MALOTHU: DR. G. RANJITH REDDY: SHRI VENKATESH NETHA BORLAKUNTA:

## Will the Minister of TEXTILES वस्त्र मंत्री

be pleased to state :

(a) whether the Government intends to set up Indian Institute of Handlooms (IIH) in the country;

(b) if so, the efforts made by the Government so far;

(c) whether the Government of Telangana requested for setting up of IIH in Telangana;

(d) the action taken by the Government so far in this regard;

(e) whether the Ministry has requested Finance Ministry to remove GST on Handlooms; and

(f) if so, the details thereof?

## उत्तर

## ANSWER

## वस्त्र राज् य मंत्री ( श्रीमती दर्शना जरदोर् )

## THE MINISTER OF STATE FOR TEXTILES

## (SMT. DARSHANA JARDOSH)

(a) & (b): There  are  6  Indian  Institutes  of  Handloom  Technology  (IIHTs)  under  Central  Sector under  the  administrative  control  of  the  Office  of  D.C.  (Handlooms)  and  these  are  situated  at  Salem (Tamilnadu), Varanasi (Uttar Pradesh), Guwahati (Assam), Jodhpur (Rajasthan), Bargarh (Odisha) and Fulia,  Shantipur  (West  Bengal).  Besides,  4  IIHTs  under  State  Sector  are  also  functioning  under  the administrative  control  of  respective  State  Governments  and  are  situated  at  Venkatagiri  (Andhra Pradesh), Gadag-Betgeri (Karnataka), Champa (Chhattisgarh) and Kannur (Kerala). There is no further proposal under  consideration of Government  for  setting up  of Indian Institute  of  Handlooms Technology.

(c) & (d): Government of Telangana in 2017 had requested that an Indian Institute of Handloom Technology (IIHT) may be sanctioned for Telangana State at Pochampally near Hyderabad. The State Government was informed in 2017 that Pochampally Handloom Park was sanctioned under the Scheme for  Integrated  Textile  Parks  (SITP)  for  production  activity.  A  training  centre  is  also  sanctioned  in Pochampally Handloom Park and scheme guidelines of SITP, do not provide for establishment of IIHT at Pochampally Handloom Park.

(e) & (f): Goods  and  Services  Tax  (GST)  has  been  introduced  by  Government  of  India  to rationalize  multiple  taxes  on  goods  &  services  and  bring  uniformity  and  transparency  in  the  taxation system.  Accordingly, it is applicable to the Textile sector, including handlooms.

GST rates are prescribed on the recommendation of GST Council, which consists of  Union Finance Minister  and  Ministers  nominated  by  representative  State  Governments.  In  its  45 th meeting,  GST Council made a recommendation for revising GST rates on textile products and related services from 5% to 12% to correct inverted duty structure in these goods and services.

Subsequently, GST Council in its 46 th meeting decided to defer the increase in GST rate on textile and textiles related job work services. Consequently, there has been no change in GST rate on garments and fabrics.

Besides,  the  threshold  limit  of  Rs.  40  lakhs  available  to  small  taxpayers  towards  exemption  from compulsory GST registration, as well as benefits of composition scheme upto Rs 1.5 Crore is available to handloom weavers too.

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