Home / Knowledge / News / Textiles / SIMA makes pre-budget recommendations to CITI

SIMA makes pre-budget recommendations to CITI

Jan '19
Removal of import duty on man-made fibres (MMF) and reduction of goods and services tax (GST) on it from 18 per cent to 12 per cent and fixing of corporate tax rate for large companies at 30 per cent including surcharge and cesses are part of the pre-budget suggestions made by the Southern India Mills Association (SIMA) to the Confederation of Indian Textile Industry (CITI).

Large companies are defined as the ones with a turnover of more than ₹50 crore. Though the tax rate for such units is only 30 per cent now, the surcharge and cesses add up to 34.94 per cent.

The Central Board of Indirect Taxes and Customs (CBIC) had allowed refund of accumulated credit on account of inverted duty structure to fabric manufacturers. However the input tax credit (ITC) accumulated on account of GST paid on capital goods and input services are not be eligible for refund.

SIMA feels all services attract 18 per cent GST and denying the refund of GST on such services makes the provision unrealistic and does not seem to serve the purpose. Hence, it has suggested allowing refund of accumulated GST in services.

Before the GST regime, exporters were allowed to utilise the Merchandise Exports from India Scheme (MEIS) scrip for the payment of all taxes like –excise duty, service tax, value-added tax and basic customs duty. However, with the introduction of the GST, the government has permitted the use of such scrip for the payment of basic customs duty only. This has resulted in minimal usage of the duty scrips.

So SIMA wants the government to consider allowing the usage of the MEIS scrips for payment of integrated GST and continue the same till other export benefits are phased out as per pact with the World Trade Organisation.

The association also suggested provision of adequate funds to clear the long pending Technology Upgradation Funds Scheme (TUFS) subsidies of committed liabilities of over 9,000 cases as per the recommendations made by the office of the textile commissioner. (DS)

Fibre2Fashion News Desk – India

Interviews View All

Amit Jain, Shingora Textiles Ltd

Amit Jain
Shingora Textiles Ltd

‘In terms of fabric, the fastest growing category for us is a blend of...

Prabu Mohanram, Balavigna Weaving Mills Pvt Ltd

Prabu Mohanram
Balavigna Weaving Mills Pvt Ltd

The biggest challenge that the weaving industry faces is high price

Top executives, Textile & apparel bodies

Top executives
Textile & apparel bodies

The decision to reduce GST on MMF yarn to 12% is transformational

Gagan Gulati,

Gagan Gulati

PG Silk Mills Private Limited had a humble start with a hand-dyeing unit....

Jason Remnant,

Jason Remnant

<div>Xaar plc develops digital inkjet technology; it designs and...

Awanda Booth,

Awanda Booth

Held every year in New York City, Surtex is a global business-to-business...

Paige Mullis, Glen Raven Inc

Paige Mullis
Glen Raven Inc

Paige Mullis discusses the expansion plans of Glen Raven Inc in India, and ...

Georg Reinhold, Trützschler  Nonwovens & Man-Made Fibers

Georg Reinhold
Trützschler Nonwovens & Man-Made Fibers

Trützschler Nonwovens & Man-Made Fibers, a part of the Trützschler Group,...

Lynda Kelly, Suominen Corporation

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Sandeep and Sarah Shaikh Gonsalves, SS Homme

Sandeep and Sarah Shaikh Gonsalves
SS Homme

SS Homme celebrates the craft of traditional tailoring through the bespoke ...

Silvia Venturini Fendi, Fendi s.r.l

Silvia Venturini Fendi
Fendi s.r.l

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

Prathyusha Garimella, Prathyusha Garimella

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

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

December 2019

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

Advanced Search