Home / Knowledge / News / Textiles / Fix 5% GST rate for textile goods: Textile bodies
Fix 5% GST rate for textile goods: Textile bodies
28
Apr '17
Uniform levy of 5 per cent Goods and Services Tax (GST) on all textiles and clothing products should be considered to ensure smooth migration of the entire value chain to the new tax structure, said over 20 textile associations led by the Southern India Mills' Association (SIMA) in a joint memorandum submitted to Union textiles minister Smriti Irani.

The entire cotton textile value chain is currently enjoying the zero per cent Central Excise benefit under optional Cenvat from 2004. Under this scenario, a uniform levy of 5 per cent (lowest slab) GST on all textiles and clothing products would ensure smooth migration of entire textile value chain from the present tax structure to GST tax structure with full compliance, creating win-win strategy for all the stakeholders and would bring substantial revenue to the exchequer when compared to the existing revenue., said the associations in the joint memorandum.

The associations have requested that all the existing export benefits including AIR duty drawback rates, ROSL benefits, MEIS, IES, EPCG and other benefits announced under garment/ made-ups export package need to be continued for some time after the implementation of GST as the industry has just begun taking advantage of these schemes and grabbing global export opportunities. All the existing export benefits could be continued till its expiry period in the case of apparel and made-ups package and for two years for all other export benefits, as the industry has no level playing field in the international market due to delay in concluding FTAs with various potential markets.

The textile associations have also asked Irani to persuade the ministry of commerce & industry and Prime Minister’s Office to conclude FTAs with all the potential importing countries especially EU, Britain, China, US, Canada, etc., to enable India to compete with countries like Vietnam, Bangladesh, Pakistan etc.

Irani has also been urged to bring back the Technology Mission on Cotton in a revised format (TMC II) with four Mini Missions to take necessary action so that the proposed anti-dumping duty on polyester staple fibre is dropped. Another request is to expedite the announcement of processing package and also extend 25 per cent capital subsidy without cap on investments with effect from January 13, 2016 to make the investments that are in pipeline financially viable.

The associations led by SIMA have also asked to revise the NPA norms to sustain the smooth functioning of SMEs in the textile industry. They said that the hank yarn obligation could be reduced to 15 per cent immediately to facilitate ease of doing business and the Handloom Reservation Act should be revamped. (KD)

Fibre2Fashion News Desk – India


Must ReadView All

Apparel/Garments | On 26th Sep 2017

US raises annual AGOA quota for textiles

The US Committee for the Implementation of Textile Agreements has...

Textiles | On 26th Sep 2017

Gujarat hopes extended textile policy to attract Rs 5000 cr

The Gujarat government feels that its recent decision to extend its...

Apparel/Garments | On 26th Sep 2017

Cash burn by e-tailers in India may double during festivals

During this year’s festival season, which has already started,...

Interviews View All

Jurgen Gauger
Spreadshirt

‘Buying crowdsourced or creative designs are much more appealing to the...

Mandeep Nagi
Shades of India

Women value something that is unique and has a flavour of India

Krishnanand Tripathi
Textrade International Ltd

We believe in vocational education for entry-level employees, offering...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Nisha Chanda
Whistling Woods International School of Fashion

<div>A lack of upgraded courses in costume designing and fashion as per...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

September 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
74.5%
No
12.8%
Skip
12.8%

Total Votes: 47

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.7%
No
25.5%
Skip
12.8%

Total Votes: 47

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.2%
No
6.4%
Skip
6.4%

Total Votes: 47

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
70.2%
No
10.6%
Skip
19.1%

Total Votes: 47


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search