Home / Knowledge / News / Textiles / SIMA welcomes GST era for textile industry
SIMA welcomes GST era for textile industry
03
Jul '17
The Southern India Mills' Association (SIMA) has welcomed GST era for the textile industry and highly appreciated the government and Union textile minister Smriti Irani for bringing a seamless tax structure for the entire cotton textile value chain at the lowest slab rate of 5 per cent GST rate. The year 2017-18 will be beneficial for the cotton industry.

M Senthilkumar, chairman of SIMA said that the year 2017-18 will be a good year for the cotton textile industry with a sound tax eco system and real time governance coupled with availability of surplus cotton. He added that the textile industry has been suffering with numerous taxes and different types of cess which were adding to the cost indirectly as they were not duty drawback compatible and therefore adding to the cost thus making the industry uncompetitive especially, the MSMEs and decentralised segments.

With the implementation of GST, all indirect taxes would be merged, said the SIMA chief. He also stated that Tamil Nadu accounts for 1/3rd of the textile business of the nation the state governments especially the government of Tamil Nadu should come forward and remove certain taxes and levies that are not subsumed in GST like Market Committee Fee and various other municipal taxes.

SIMA chairman also applauded the efforts made by the Union textile minister for organising Textiles India 2017, the first ever textile industry international event organised by the Government of India by bringing over 1,000 exhibitors, 2,500 overseas buyers and 15,000 domestic buyers. He thanked the Prime Minister for inaugurating the event, visiting the stalls and delivering an inspiring speech at the event, said the association in a press release.

SIMA chief also highly appreciated the thorough understanding by Prime Minister about the textile industry and giving top most priority for the growth of the industry. He also added the active initiative taken by the Chief Minister of Andhra Pradesh and the state government of Telangana, especially KT Rama Rao, minister for panchayat raj & information technology for the efforts taken by them to attract investments in these states. Senthilkumar felt that Textiles India 2017event would greatly enhance the visibility of Indian textile industry in the global market.

SIMA chairman, however, is disappointed for not considering the genuine demand of reducing 18 per cent GST on MMF and blended spun yarn to 12 per cent which will avoid huge inverted duty accumulation at grey fabric stage. He said that the decision of considering any rate revision only after three months would seriously affect the synthetic spinning and grey fabric manufacturing sectors.

He added that the GST Council had presumed that the total duty levied on MMF and its blended spun yarn was 17.5 per cent with 12.5 per cent Central excise and 5 per cent VAT which is true only for filament yarn. He further said that in the case MMF spun yarn over 97 per cent sales was inter-state with 2 per cent CST and almost all the yarn sale was at zero rate optional route with regard to central excise. He stated that the inverted duty would steeply increase the fabric price and make Indian textile uncompetitive as the imports would loom large with a reduction of duty on imports, to the tune of 12 per cent. He also appealed to the Prime Minister and the finance minister to reduce the GST rate on MMF and its blended yarn from 18 per cent to 12 per cent and also include garment and made-ups job work under the 5 per cent service tax list of GST. (KD)

Fibre2Fashion News Desk – India


Must ReadView All

15 trade associations urge nations to safeguard WTO system

Apparel/Garments | On 15th Dec 2017

15 trade associations urge nations to safeguard WTO system

Fifteen trade and industry associations from across the world have...

Ethiopia’s Kombolcha Industrial Park attracts foreign firms

Apparel/Garments | On 15th Dec 2017

Ethiopia’s Kombolcha Industrial Park attracts foreign firms

Strategic location, modern factory facilities and proximity to the...

Courtesy: H&M

Apparel/Garments | On 15th Dec 2017

H&M, Alibaba extend collaboration

H&M has extended collaboration with Alibaba with the opening of its...

Interviews View All

Janak Dhamanwala & Sunil Dhamanwala
Jansun

Moving towards sustainability is also a social change

Amit Jain
Shingora Textiles Ltd

‘In terms of fabric, the fastest growing category for us is a blend of...

Anavila Misra
Anavila Collection

Fashion shows are also encouraging and highlighting sustainable fashion

Riddhi Jain

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

C Dhandayuthapani

MAG Solvics Private Limited was established in 1991 to design and develop...

Urmil Arya

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

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Divvya and Nidhhi Gambhir
Walnut

<b>Divvya and Nidhhi Gambhir</b> started their career with the launch of...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

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

December 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
69.6%
No
12.0%
Skip
18.5%

Total Votes: 92

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
62.0%
No
30.4%
Skip
7.6%

Total Votes: 92

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
87.0%
No
9.8%
Skip
3.3%

Total Votes: 92

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
81.5%
No
8.7%
Skip
9.8%

Total Votes: 92


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