Annoyed by the Centre’s decision to introduce reverse charge mechanism (RCM) under the Goods and Services Tax (GST), cotton ginning industry has softened its stand and deferred its strike till December 20.
The issue of RCM and 0.1 per cent tax on export of cotton caused uncertainty among ginners, who strongly opposed the move. “We held discussions with government officials and Gujarat’s Deputy Chief Minister and Finance Minister Nitinbhai Patel. We were told that there is no possibility to reverse the order on RCM.
However, we have been assured of timely refund for our November return filing,” said Dilip Patel of Raja Industries in Kadi, and convenor of All India Ginners Association.