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

Textiles | On 20th Aug 2017

PetroVietnam, Vinatex discuss reviving PVTEX plant

Discussions are under way between PetroVietnam and textile and...

Courtesy: Mexx

Fashion | On 20th Aug 2017

RNF acquires Mexx fashion brand

RNF, the Dutch sports and fashion holding, has purchased the global...

Textiles | On 20th Aug 2017

Intertextile Shanghai Home Textiles opens on August 23

Intertextile Shanghai Home Textiles, Asia’s leading platform to meet...

Interviews View All

Nitin Soni
Dolphin Jingwei Machines

Taxation policies need to be made simpler

Nishank Patel
Shri Dinesh Mills Limited

Broad range of fabrics will sell well this financial year

Sanjay Yagnik
Maa Tex Speciality

‘We suggest reducing dosage of sizing chemicals to reduce sludge...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Eric Scholler
Groz-Beckert

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

Karan Arora
Karan Arora

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

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

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

August 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
66.7%
No
16.7%
Skip
16.7%

Total Votes: 30

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
43.3%
No
36.7%
Skip
20.0%

Total Votes: 30

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
83.3%
No
6.7%
Skip
10.0%

Total Votes: 30

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
60.0%
No
10.0%
Skip
30.0%

Total Votes: 30


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