Home / Knowledge / News / Textiles / GST impasse – Domestic textile trade falters
GST impasse – Domestic textile trade falters
Mar '11
Producers-cum-exporters from the five sectors which previously were under the zero-tax regime have halted their domestic as well as international trade as they are looking forward to the government to clear the uncertainties in the ordinance issued on March 15.

Through the ordinance, the government ended the 17 percent general sales tax (GST) exemption, that these sectors enjoyed on their domestic sales and also obliges traders to trade with only registered taxpayers, failing which, they would be subjected to the levy of 17 percent GST.

The collective exports of the five zero-rated sectors, namely leather, textiles, carpets, sports goods and surgical goods, for financial year 2009-10 remained above $13 billion.

None of the ginners, cotton cultivators or weavers are registered taxpayers or exporters, and hence if an exporter purchases products from them with an intention to export the same after value addition, he would be subjected to 17 percent GST.

Also it is apprehended that, such halting of trade would result in delay in exports, and would cause irreversible damage to the country's economy and may even lead these industries to lose their hard-earned markets to other competing countries in the region.

Meanwhile, as the cotton yarn producers are not being able to gain clarity regarding the law, they have blocked supplies to the fabric producers.

Fibre2fashion News Desk - India

Must ReadView All

Textiles | On 10th Dec 2016

India’s 2016-17 cotton import to touch 17 lakh bales

The import of cotton from international markets by spinning mills in...

Textiles | On 10th Dec 2016

US textile & apparel imports fall 6.50% in Jan-Oct ’16

The import of textiles and apparel by United States dropped 6.50 per...

Textiles | On 10th Dec 2016

Indian textile hubs adopt cashless payment modes

The textile ministry is promoting cashless payment within the...

Interviews View All

Giovanni Pizzamiglio, Paolo Crespi & Riccardo Robustelli
Epson, For.Tex & F.lli Robustelli

‘The percentage share of printing in the global textile market is pretty...

Angelina Francesca Cheang

'Consumers in the age-group 21 to 38 are driving the activewear trend'

Studio Priyanka Rajiv

‘To reinvent the age-old tradition of embroidery to suit demographics and...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Eric Scholler

The Indian market has huge potential in technical textiles, and by far,...

Robert Brunner

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

December 2016

December 2016

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


Browse Our Archives


Advanced Search