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: Prime Minister's Office, UK

Textiles | On 15th Nov 2018

British PM May secures cabinet support on Brexit

The British cabinet on 14 November backed a draft withdrawal...

India expands paperless processing of export documents

Apparel/Garments | On 15th Nov 2018

India expands paperless processing of export documents

To improve ease of conducting business and promote paperless...

Pak textile mills assured of ECC decision implementation

Textiles | On 15th Nov 2018

Pak textile mills assured of ECC decision implementation

The Pakistani prime minister’s advisor for commerce, textile,...

Interviews View All

Mukesh Agarwal & Rajesh Agarwal, Madhuram Fincap Pvt Ltd

Mukesh Agarwal & Rajesh Agarwal
Madhuram Fincap Pvt Ltd

Increasing prices and lack of demand main issues facing industry

Subhashini Srinivasan, The S Studio

Subhashini Srinivasan
The S Studio

Ethnicwear market will see an upward trend if uniqueness and quality are...

Saket Garg, Garg Corporation

Saket Garg
Garg Corporation

The biggest challenge is lack of skilled workforce and competition from...

Sarah Perkins,

Sarah Perkins

Fairfax, Virginia-based Specialty Graphic Imaging Association (SGIA) is a...

Paolo Crespi,

Paolo Crespi

For.Tex is an Italy-based leading producer of dyes and thickeners, and is...

Cong Zheng,

Cong Zheng

The China Textile Machinery Association (CTMA) is a social-economic...

Kazuaki Yazawa, Purdue University

Kazuaki Yazawa
Purdue University

Scientist <b>Kazuaki Yazawa</b> has developed thermoelectric semiconductor ...

Dr. Rene Wollert, Freudenberg Nonwovens

Dr. Rene Wollert
Freudenberg Nonwovens

Dr. Rene Wollert discusses the current scenario of the global nonwovens...

Iago Castro Asensio, RCfil Distribuciones S.L.

Iago Castro Asensio
RCfil Distribuciones S.L.

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

Adriano Goldschmied, AG Jeans

Adriano Goldschmied
AG Jeans

The hype around 'designer jeans' was created by him. And the new wave of...

Madhu Jain, Madhu Jain

Madhu Jain
Madhu Jain

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

Amiben Shroff, Shrujan

Amiben Shroff
Shrujan

From its modest beginning in the late 1960s, Shrujan has grown into a...

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