Home / Knowledge / News / Textiles / No further relief to textile sector: GST Council
No further relief to textile sector: GST Council
19
Jun '17
The Goods and Services Tax (GST) Council said that no more relief will be given to the textile sector before the bill is rolled out on July 1. Prior to the 17th GST Council meeting that was held on June 18, industry associations had urged finance minister Arun Jaitley to exempt yarn and fabric from GST and bring various job works under the 5 per cent slab.

A day before the 17th Council meeting, the Southern India Mills' Association (SIMA) had said that the textile industry hopes that the Council would reduce the GST rate on manmade fibres, filaments and yarns from 18 per cent to 12 per cent and also would include garments, made-ups and other sewn product related to job work under 5 per cent GST rate of service tax.

In a press release, M Senthilkumar, chairman, SIMA had stated that there will be huge accumulation of excess credit with 18 per cent GST rate on yarn and only 5 per cent GST rate and non-refund of accumulated input tax credit at fabric stage. This would significantly increase the fabric cost and seriously affect the independent spinning and weaving units including powerloom sector.

SIMA chief had also noted that the differential rates and non-refund of accumulated input tax credit would not only affect the industry, but also lead to wrong declaration and corruption. Therefore, he appealed to the government to discourage any loophole for wrong declaration and corruption and pleaded for refund of accumulated input tax credit at fabric stage to protect the interest of powerloom sector and also meet the clothing needs of poor masses of the nation with reasonable tax burden. 

Textile clusters in Gujarat had also observed a day-long bandh on June 15 to oppose the Council's proposal to levy 5 per cent GST on yarn and fabrics, while the Federation of Indian Exports Organisation (FIEO) had urged the government to bring textile job works including embroidery, cutting and garmenting under the 5 per cent slab.

The Tiruppur Exporters' Association (TEA) had appealed to reduce the rate for job work operations after garmenting activities to 5 per cent from the current rate of 18 per cent. The Confederation of Indian Textile Industry (CITI) was also of the opinion that job work under made-ups should also be taxed at 5 per cent instead of 18 per cent.

However, the Council did not take any of the demands into consideration and is not likely to alter the rates until after GST is rolled out. (KD)

Fibre2Fashion News Desk – India


Must ReadView All

Building of Ethiopian textile unit by Chinese firm starts

Textiles | On 22nd Jan 2018

Building of Ethiopian textile unit by Chinese firm starts

Chinese firm Wuxi No. 1 Cotton Mill will build a textile plant in...

India’s silk board chief stresses need to boost production

Textiles | On 22nd Jan 2018

India’s silk board chief stresses need to boost production

Silk production in India needs to be increased as inadequate...

Kenya AGOA aims doubling 2016 exports value to US by 2025

Apparel/Garments | On 22nd Jan 2018

Kenya AGOA aims doubling 2016 exports value to US by 2025

The United States Agency for International Development (USAID) Hub in ...

Interviews View All

Marazban F Velati
Sutlej Textiles & Industries limited

No training can be effective till the candidate believes in it.

Top executives
Fashion houses, India

With technology, it has become easier to ensure IPR

Luke Otten
Wigwam Mills Inc

Wigwam aims to recycle discarded yarn that doesn’t make it through the...

Urmil Arya

Sushila International, a well established textile organisation established ...

Riddhi Jain

Conceived in Europe and curated in New Delhi, NeceSera is a...

Erik Sy

Manila-based CustomThread is a start-up offering premium custom apparel...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Ashok Desai
Bombay Textile Research Association

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

Nisha Chanda
Whistling Woods International School of Fashion

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

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

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

January 2018

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
69.1%
No
13.4%
Skip
17.5%

Total Votes: 97

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
63.9%
No
28.9%
Skip
7.2%

Total Votes: 97

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
87.6%
No
9.3%
Skip
3.1%

Total Votes: 97

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
82.5%
No
8.2%
Skip
9.3%

Total Votes: 97


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