The issue of Reverse Charge Mechanism (RCM) on cotton has come under attack. Members of the trade, ginners and seed producers have threatened to go on an indefinite strike if the RCM issue remains unresolved during the next GST Council meeting on December 21 by closing shutters from the very next day.

Members of Cotton Association of India (CAI) including representatives from ginners fraternity and members from all upcountry associations of cotton growing states deliberated on the RCM issue before deciding to give an indefinite call for strike if the issue is not addressed at the next GST Council meet Atul S Ganatra, President, CAI, chaired the meeting.

Issues relating to pending refunds to exporters since the roll of GST from July 1, plight of the cotton sector due to pink bollworm infestation and the consequent loss suffered by the farming community, blockage of ginners funds as cotton seed buyers and buyers of cotton bales were not paying GST were deliberated at length.

Trade sources appealed to CAI to take up the matter relating to removal of RCM on kappas. Omprakash Jain, President, Karnataka Cotton Association, said if RCM on cotton is not removed immediately, there would be no way left for ginners but to close down operations.

BS Rajpal, President, Maharashtra Cotton Ginners’ Association, contended that imposition of RCM on cotton is unjust as no other agri-commodity came under the purview of RCM. Manish Daga, Director, CAI, said around 2,700 farmers were diverting from cultivation of cotton to other crops every day. The resultant impact could adversely affect the textile sector.

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