Textile industry welcomes 5% GST

The textile industry has welcomed the GST Council’s move to fix 5% GST rate on cotton textiles and said it will lead to the growth and development of the entire value chain.

In a statement, The Cotton Textiles Export Promotion Council (Texprocil) said the move will result in higher compliance and encourage farmers to grow more cotton. The Council has said these low rates will not cast any additional burden on the sector and will ensure that India regains its competitiveness in the textiles sector in world markets.

Ujwal Lahoti, Chairman, Texprocil, also requested the government to announce draw back rates to take into account the unrebated duties under GST and continue the ROSL Scheme for madeups and also extend it to fabrics and yarn.

“The GST rate for textiles will eliminate the cascading effect of duty/taxes which will reduce the costs and improve the competitiveness of the textiles exports,” Lahoti said. He also urged the government to ensure speedy refund of input tax credits on exports so that exporter’s funds does not get blocked.

Liked the story?

  • 0

    Happy
  • 0

    Amused
  • 0

    Sad
  • 0

    Frustrated
  • 0

    Angry