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GST may lead to increase in man-made yarn prices
06
Jun '17
The Goods and Services Tax (GST) Council has decided to levy 18 per cent GST on man-made fibre and yarn, while man-made fabric will attract 5 per cent GST. The higher GST rate on MMF and man-made yarn may lead to increase in man-made yarn prices while also creating confusion on input credit, according to powerloom weavers and traders from the textile hub of Surat.

At the current rate of taxation, tax on yarn works out to approximately Rs 0.70 to Rs 0.80 per kilogram. As per the GST rate structure, tax would work out to Rs 2.5 to Rs 5 per kilogram, which will result in increase in yarn prices, textile entrepreneurs said on the sidelines of a seminar in the city.

The seminar on ‘Impact and Implementation of GST in Textiles’ was organised by the Southern Gujarat Chamber of Commerce and Industry (SGCCI).

Entrepreneurs also said that the GST slabs would create confusion among man-made fibre industry in getting input tax credit. (RKS)

Fibre2Fashion News Desk – India


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