CITI hails GST relief for MMF value chain, highlights MSME gains

Confederation of Indian Textile Industry (CITI) has welcomed the GST Council’s move to rectify the inverted duty structure in the man-made fibre (MMF) value chain. Reacting to the decision, CITI chairman Rakesh Mehra said the alignment of GST on MMF fibre and yarn to 5 per cent, down from 18 per cent and 12 per cent earlier, will ease liquidity pressures and enhance competitiveness for thousands of spinners and weavers.

“It addresses the long-standing blockage of working capital for thousands of spinners and weavers. With over 70-80 per cent of textile and apparel units in India being MSMEs, this reform will directly benefit a large segment of the industry by easing liquidity pressures, enhancing competitiveness,” Mehra said in a statement.

The change is part of the wider GST rationalisation announced in the Council’s 56th meeting in New Delhi. The new rates take effect from September 22, 2025.

Fibre2Fashion News Desk (HU)