Home / Knowledge / News / Textiles / GST Council allows ITC refund to fabrics
GST Council allows ITC refund to fabrics
23
Jul '18
The Goods and Services Tax (GST) Council at its 28th meeting held under the chairmanship of Union minister for railways, coal, finance and corporate affairs Piyush Goyal has recommended for allowing refund of input tax credit (ITC) to fabrics. The refund of accumulated ITC shall be with prospective effect on purchases made after notification is issued.
 
“Fabrics attract GST at the rate of 5 per cent subject to the condition that refund of accumulated ITC on account of inversion will not be allowed. However, considering the difficulty faced by the fabric sector on account of this condition, the GST Council has recommended for allowing refund to fabrics on account of inverted duty structure. The refund of accumulated ITC shall be allowed only with the prospective effect on the purchases made after the notification is issued,” the ministry of finance said in its post-Council meeting statement.
 
Welcoming the Council’s decision Confederation of Indian Textile Industry (CITI) chairman Sanjay K Jain said, “It was the need of the hour as fabric sector is already facing a lot of difficulties while competing with its counterparts in international market. CITI has been consistently requesting to the government to give relief to the fabric segment as for the overall growth of the textile sector, fabric sector plays an important role and it also generates sizeable employment opportunities—40 jobs on ₹1 crore investment—which is more than any segment of the textile value chain. Hence, decision to allow refund of accumulated ITC at fabric stage due to inverted duty structure is a big relief to the textile sector.”
 
The Synthetic & Rayon Textiles Export Promotion Council (SRTEPC) has also termed the Council’s decision as one of a great relief to the textile industry in general and fabrics manufacturers in particular. 
 
“In the MMF textile segment which is highly fragmented and decentralised, individual units are specialised in particular field of textiles spinning or yarn preparatory or weaving or processing or value addition and instead of carrying out the entire textile value chain they are doing part of the job only,” said SRTEPC chairman Narain Aggarwal.
 
“Since most of the exporters in the MMF textile segment rely on job work for getting their textile products manufactured, the accumulated ITC, which remain unrebated, was increasing financial burden, and liquidity crunch on the exporters as well as domestic manufacturers was substantial. Therefore, this step of allowing refund of accumulated ITC on fabrics will benefit more than 5 lakh weavers and knitters in the country. This will be a big boost to the MMF segment in particular,” he added. (RKS)
 

Fibre2Fashion News Desk – India


Must ReadView All

Courtesy: Businesswire/PrimaLoft

Textiles | On 18th Nov 2018

PrimaLoft unveils PrimaLoft Bio Performance Fabric

PrimaLoft, a leader in advanced material technology, has unveiled...

Higher sales and earnings at Macy's in Q3FY18

Fashion | On 18th Nov 2018

Higher sales and earnings at Macy's in Q3FY18

Higher sales and earnings were recorded at Macy’s, one of the premier ...

Courtesy: Amazon

Apparel/Garments | On 18th Nov 2018

Amazon's new headquarters in New York City, Arlington

Amazon is setting up two new headquarters, one in New York City and...

Interviews View All

Smith Vaghasia, Sanado India

Smith Vaghasia
Sanado India

Online remains the best destination for shopping

Ghanshyam Ghoghari, Kimora Fashion

Ghanshyam Ghoghari
Kimora Fashion

Bridalwear is not about reds and whites anymore

DK Sharma, Velocity Apparelz

DK Sharma
Velocity Apparelz

We constantly communicate with employees at all levels

Rikesh Mistry,

Rikesh Mistry

Jupiter Comtex Pvt Ltd, established in 1973, started its textile machinery ...

Farheen B Rahman & Priti Jain,

Farheen B Rahman & Priti Jain

Founded by business-designer duo <b>Priti Jain and Farheen Rahman</b>,...

Erik Sy,

Erik Sy

Manila-based CustomThread is a start-up offering premium custom apparel...

Iago Castro Asensio, RCfil Distribuciones S.L.

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Eric Scholler, Groz-Beckert

Eric Scholler
Groz-Beckert

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

Andreas Lukas, Andritz Nonwoven

Andreas Lukas
Andritz Nonwoven

With forces in engineering and process development, Andritz Nonwoven...

Hemant & Nandita, Hemant & Nandita

Hemant & Nandita
Hemant & Nandita

The designer duo of Hemant &amp; Nandita are known for being inspired by...

Pranav Mishra, Huemn

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Divvya and Nidhhi Gambhir, Walnut

Divvya and Nidhhi Gambhir
Walnut

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

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


November 2018

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

news category


Related Categories:

Advanced Search