Sanjay K Jain, vice chairman, CITI thanked finance minister Arun Jaitley, GST Council and textiles minister Smriti Irani for considering the representation and bringing all the textile job works under the service list of 5 per cent GST. He explained that the step will come as big breather to small job work manufacturers in all segments of textile value chain and will allow the free flow of business across the value chain. A common rate across the chain would also avoid confusion.
Five per cent GST rate on job works would enable to take full input credit and also avoid any inverted duty and strengthen the global competitiveness of the textile industry apart from benefiting the domestic consumers, according to Jain. He said that such a proactive response from government would enable the textile industry to become a true global player and encourage Make in India.
He also explained that reduction in tractor spares would help the cotton farmers as tractor spare parts would be now cheaper.
He further added that the much-expected reduction of GST rate for MMF and synthetics from 18 to 12 per cent being postponed is disappointing as the production for the forthcoming quarters was eagerly waiting for this. “We have apprehensions that Indian market would get flooded with imports from China, Bangladesh & Sri Lanka, which would end up in huge job losses. Imports are cheaper than domestic products as the CVD & SAD on imports have become IGST. Earlier the additional duties, namely, CVD & SAD were a protection against imports. Hence, industry would need some safeguard measures to ensure the Make in India initiative doesn’t wash away in the avalanche of imports (which have post GST become 12 to 16 per cent cheaper),” he said in a CITI press release.
He urged the government and GST Council to accommodate industries demand of 12 per cent GST rate on MMF and synthetic yarn or refund of duty under inverted duty incidence at fabric stage as prescribed in GST Act, as it would facilitate the industry’s growth. (RKS)
Fibre2Fashion News Desk – India
Apparel/Garments | On 17th Oct 2018
Readymade garment exports from Bangladesh increased by 14.66 per cent ...
Textiles | On 17th Oct 2018
A World Trade Organisation (WTO) panel recently rejected Panama’s...
Domestic manufacturers would get an edge over imported products
Colorjet India Limited
We would like to venture more companies into the Indian market
Dow Microbial Control
'Silvadur is most rapidly adopted in areas where hygiene-conscious and...
J Korin started as a partnership firm with four powerlooms in the textiles ...
India-headquartered Lulu & Sky is a rapidly escalating brand with the...
Jupiter Comtex Pvt Ltd, established in 1973, started its textile machinery ...
Birmingham City University (BCU)
<div>A technological breakthrough could see people getting messages about...
City University of Hong Kong
<div><b>Chunyi Zhi</b>, associate professor in the Department of Materials ...
The Association of the Nonwoven Fabrics Industry (INDA) has created a new...