Global Apparel Market – An Overview | Watch NOW! | Ad
Home / Knowledge / News / Textiles / Industry hails 5% GST on apparel below Rs 1000
Industry hails 5% GST on apparel below Rs 1000
Jun '17
The textile industry has appreciated government's decision to tax 5 per cent GST rate on apparel below Rs 1000 and above those will be charged at 12 per cent. With the implementation of GST rates at every level of the textile value chain, it will be difficult to evade taxes, according to Arvind Sinha, president, Textile Association (India).

"With input tax credits and local levies being merged with GST, essential garments below selling price of Rs 999 will save on the total applicable taxes, making the essential garments even more affordable. There may be a small increase in tax incidence on garments of selling price above Rs.1000, after accounting for all the input tax credits. The industry would absorb the same and there would be no change in customer selling prices," said Rahul Mehta, president of Clothing Manufacturers Association of India (CMAI), in a statement.

"In India, mass consumption of apparel is generally below Rs 1000. With the increasing purchasing capacity, change in the tax system will not have an impact on the buying pattern of consumers," Prabhu Damodaran, secretary, Indian Texpreneurs Federation, told Fibre2Fashion.

"Cotton value chain was largely under optional duty route. Introduction of 5 per cent tax will lead to increase in production cost," Apparel Export Promotion Council chairman Ashok G Rajani told a leading daily.

Appreciating the government's move to impose the 'one nation one tax' policy across India, Damodaran said, "The policy will promote level playing field with the scope of growth of efficient players. A uniform duty structure will help in the development of business. Further, the input tax credit will also help the manufacturers to reduce the cost. According to the policy, manufactures will have to pay tax only on the value addition done by them and not on the entire value of the product."

In countries like UK, China and Australia, the industrial growth rate is high because of the simple taxation process. It will take some time for the policy to streamline in India, said Sinha.

Further, CMAI is currently working with all stakeholders of the textile value chain to identify challenges that may need specific rules to allow ease of doing business, as the industry gets ready to adopt GST. (RR)

Fibre2Fashion News Desk – India

Must ReadView All

SABIC signs MoU with PRC province for petrochem complex

Textiles | On 26th Sep 2018

SABIC signs MoU with PRC province for petrochem complex

The Saudi Basic Industries Corporation (SABIC) recently announced the ...

Courtesy: Industree Skill Transform

Textiles | On 26th Sep 2018

Industree helps weavers enhance design capabilities

Industree Skill Transform Pvt Ltd (ISTPL) is a skill development...

Courtesy: Pexels

Textiles | On 26th Sep 2018

Fitch raises growth forecast for India to 7.8% in 2018-19

Rating agency Fitch last week raised India’s growth forecast for...

Interviews View All

Stefan Warnaar, Peak to Plateau

Stefan Warnaar
Peak to Plateau

People are willing to pay for quality and performance

Abhishek Ganguly, Puma India

Abhishek Ganguly
Puma India

‘As a brand, Puma is always looking for new and innovative ways to inspire ...

Cindy McNaull, Cordura

Cindy McNaull

We have broad range of options in durable fabrics

Rajat Jaipuria,

Rajat Jaipuria

Activewear brand Soul Space promotes organic cotton farming and...

Sugandha Bhardwaj,

Sugandha Bhardwaj

<div>New Delhi-based Brinjal Designs Pvt Ltd manufactures home furnishing...

Urmil Arya,

Urmil Arya

Sushila International, a well established textile organisation established ...

Pierre Wiertz, EDANA

Pierre Wiertz

EDANA, the international association serving the nonwovens and related...

S Ziya Gumuser, Teknomelt

S Ziya Gumuser

Turkish nonwoven manufacturer Teknomelt has been around for only seven...

Isabel Herranz, European School of Business & innovation

Isabel Herranz
European School of Business & innovation

Cutting-edge ideas like the Internet of Things and artificial intelligence ...

Wendell Rodricks, Wendell Rodricks

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Amiben Shroff, Shrujan

Amiben Shroff

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

Yash P. Kotak, Bombay Hemp Company

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on

Letter To Editor

(Max. 8000 char.)

Search Companies


Leave your Comments

October 2018

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

news category

Related Categories:

Advanced Search