Home / Knowledge / News / Textiles / SIMA urges Centre to re-look duty drawback rates
SIMA urges Centre to re-look duty drawback rates
23
Sep '17
The Southern India Mills’ Association (SIMA) has appealed to the ministry of finance to have a re-look at the new duty drawback rates announced by the Central Board of Excise and Customs (CBEC). It has also urged the government to refund all the blocked, embedded taxes, levies and accumulated input tax credit on fabric, especially the processed fabric.

The existing duty drawback rate on cotton yarn is 2.5 per cent, which is reduced to 1.2 per cent effective October 1, 2017. Likewise, the rates on cotton grey fabric, cotton garments and madeups have been reduced to 1.3 per cent, 2 per cent and 2 per cent from 4.3 per cent, 7.7 per cent and 7.3 per cent, respectively.

In a press release, SIMA chairman P Nataraj stated that the cost of dyes and chemicals accounts for 30 to 40 per cent of the processing charges. “Dyes and chemicals attract 18 or 28 per cent GST making 3 to 5 per cent accumulation of input tax credit as the fabric or processing job work attracts only 5 per cent GST.” He added that the service tax has been increased 15 to 18 per cent and several services have been brought under tax net under GST. 

At yarn stage the actual drawback rate would work out to 2 to 2.5 per cent and at grey fabric stage, the same would work out around 3 per cent while at finished fabric, garments and madeups would work out to more than 5 per cent, according to Nataraj.

Stating that exports will suffer and dwindle down sharply due to reduction in duty drawback rates, Nataraj urged the government to have a re-look in order to protect the jobs of several million people working in the textile industry.

He urged the government “to extend the existing drawback benefits till the GST anomalies and problems are fully sorted out and also the realistic drawback rates refunding all blocked, embedded taxes and levies including accumulated input tax credit at fabric stage are fully taken into consideration”. (RKS)

Fibre2Fashion News Desk – India


Must ReadView All

Pakistan’s FBR imposes 5% sales tax on cotton import

Textiles | On 21st Jul 2018

Pakistan’s FBR imposes 5% sales tax on cotton import

Pakistan’s Federal Board of Revenue recently withdrew sales tax...

Bangladesh drafts policy for Tk1,000 cr govt jute fund

Textiles | On 21st Jul 2018

Bangladesh drafts policy for Tk1,000 cr govt jute fund

Bangladesh will set up a Tk10,000-crore Jute Sector Development Fund...

Ahmad A. Al Sa’adi and Kwon Pyung-Oh display a comprehensive Memorandum of Understanding; Courtesy: Saudi Aramco

Textiles | On 21st Jul 2018

Saudi Aramco, KOTRA sign MoU for business cooperation

Saudi Aramco has signed an MoU with the Korea Trade-Investment...

Interviews View All

Varinder Singh Jawanda
Trendy Bharat

Sizing and fitting issues are inherent problems for companies expanding...

Karan Toshniwal
Orange O Tec

Contemporary industry is paying more and more attention to the...

Sonia Agarwal
Whitenife

‘The terms eco-friendly and organic are common but everyone perceives them ...

John Kelley

Textile Events is one of the largest textile fair in the United Kingdom,...

Urmil Arya

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

Anupam Arya

<div>Jaipur-based Fabriclore Retailing Pvt. Ltd. is attempting to revive...

Lynda Kelly
Suominen Corporation

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

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Adriano Goldschmied
AG Jeans

The hype around 'designer jeans' was created by him. And the new wave of...

Vaanee Bhatia
Gritstones Clothing

<div>Delhi-based Gritstones Clothing offers quality and exemplary style...

Akta Adani
India Boulevard

India Boulevard is a San Francisco-based curated fashion marketplace that...

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

Leave your Comments


July 2018

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

news category


Related Categories:

Advanced Search