- Textile industry advocates for a uniform 5% GST across the entire value chain.
- Cotton-based textiles have 5% GST, except garments over ₹1,000 which have 12%.
- Man Made Fibre sector faces 18% GST on raw materials, 12% on yarn, and 5% on fabric and garments, with 12% on items over ₹1,000.
- Industry leaders call for a fibre-neutral GST rate to avoid inverted duty structure.
- Achieving $100 billion exports and $250 billion domestic sales by 2030 requires growth in all textile sectors.
- No major expansion expected in viscose and cotton sectors; MMF sector growth is crucial.
- Proposal for 12% GST on garments over ₹2,000 and 5% on other textile products.
- MSMEs face challenges with blocked funds from input taxes.
- MMF products are affordable and should have a uniform 5% GST.
- Textile sector is a major job creator and needs investment-friendly GST rates.
Source: a2ztaxcorp.net
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
