Many industrial societies housing the power loom units have come up with posters and banners urging the power loom weavers not to file the GSTR-3B return to protest against the decision taken by the central government to ‘lapse’ the accumulated input tax credit (ITC) on Wednesday. The banners have been put up by the Federation of Gujarat Weavers Association (FOGWA) at various industrial estates. The FOGWA has stated that the lapse of the accumulated ITC credit will have a cascading effect on the powerloom sector. The unit owners operating more than 100 machines will have to face losses to the tune of Rs 7 lakh, while Rs 2 lakh losses for the unit owners operating less than 20 machines.
FOGWA office-bearers said that they have strongly demanded to extend the filing of the tax audit report from September 30 to November 30. Reason being: the weavers will have to file advance tax on September 15, GSTRB on September 20 and October 20 respectively. and ITC-04 and tax audit report on September 30. Along with this, the weavers will have to file GSTR-1 and quarterly TDS return by October 31. President of FOGWA, Ashok Jirawala said, “The small and medium weavers will not be able to file six returns in a short span of time. When the issue of ITC credit lapse is still not resolved, the weavers have been asked not to file the GSTR-B return.”