Home / Knowledge / News / Textiles / Gujarat govt to compensate SGST for textile sector
Gujarat govt to compensate SGST for textile sector
10
Jul '18
Courtesy: Pexels
Courtesy: Pexels
The state government of Gujarat has announced a new scheme, under which state goods and services tax (SGST) will be reimbursed for sales within the state. As per a General Resolution (GR) of the department of industries and mines, the reimbursement will be availed on inputs and input services except input tax credit (ITC) of capital goods.

The new scheme is in lieu of value-added tax (VAT) incentives promised in the Textile Policy 2012. Prior to the implementation of the GST from July 1, 2017, the textile industry used to get 2.5 per cent of VAT paid. Subsequently, the state government constituted a high-level committee to decide on compensation for VAT incentives promised under the textile policy.

On the basis of the recommendations submitted by the committee chaired by the principal secretary of the industries and mines department, the government decided to extend SGST incentives in the form of reimbursement under the Gujarat Textiles Policy 2012.

Eligible manufacturing units will be eligible for reimbursement of the aggregate of SGST amount paid through cash ledger against output liability of SGST on sale of eligible products/intermediates. However, the units shall first have to utilise all the ITC available in its credit ledger maintained on the common portal.

Reimbursement will be made by the industries commissioner on a quarterly basis, or as may be otherwise prescribed.

Under the earlier VAT system, tax was collected by the state where goods were manufactured. But under GST, the tax goes to the state where goods or services are consumed. The GST so collected is divided equally between the state and Centre. This means that manufacturing units will get 50 per cent (i.e. the state portion) of the tax paid on eligible products as reimbursement. (RKS)

Fibre2Fashion News Desk – India


Must ReadView All

Courtesy: Trinity Kubassek from Pexels

Textiles | On 19th Aug 2018

Australian wool production to fall 5.7% in 2018-19

Shorn wool production in Australia is likely to fall by 5.7 per cent...

Courtesy: Next Level Apparel

Apparel/Garments | On 19th Aug 2018

Blue Point Capital recapitalises Next Level Apparel

Blue Point Capital Partners has recapitalised Next Level Apparel, a...

Retailers approaching 100% inventory accuracy: Study

Apparel/Garments | On 19th Aug 2018

Retailers approaching 100% inventory accuracy: Study

With computer vision use cases maturing, Artificial Intelligence (AI) ...

Interviews View All

Anvita Mehra
Confidential Couture

‘It is going to take some time for Indian buyers to get accustomed to...

Rashi Menda
Zapyle

Every fifth sale we make on Zapyle is a repeat purchase

Claudia Kersten
Global Organic Textile Standard

‘GOTS is a very efficient supply chain management tool, especially for...

John Kelley

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

Riddhi Jain

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

Vikas Banduke

Softech Controls Private Limited (SCPL) is a part of the Cotmac Group, an...

Robin Grankvist
OrganoClick AB

Robin Grankvist talks about PFCs, additives and various chemicals used in...

Justin Chan & Shyam Gollakota
University of Washington

A fabric that can store data without any electronics or batteries has been ...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints 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


August 2018

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

news category


Related Categories:

Advanced Search