Textile industry seek for a uniform duty of 5pc under GST

YarnsandFibers News Bureau, 2017-01-20 10:00:00 - New Delhi

Related Keywords: definitely impact Indian textile industry, different segments of textile industry, five percent under GST, focus on GST, Government already announced special packages, looking for a uniform duty, Made ups, new tax regime, rolled out from July this year, without exemptions for any segment of the value chain

New Delhi
Textile industry seek for a uniform duty of  5pc under GST

The government has already announced special packages for different segments of the textile industry in June last year and for made ups (an article manufactured and/or stitched from any type of cloth, other than a garment) in December. But now the focus is on GST which is a new tax regime and it will definitely impact the Indian textile industry.

The industry was expecting a special package for powerloom sector to be announced shortly but they do not expect any major announcement in the budget, a spokesperson for the industry said.

The textile industry is looking for a uniform duty of 5% under the Goods and Services Tax(GST), which is expected to be rolled out from July this year.

According to M. Senthil Kumar, Chairman, Southern India Mills’ Association, till the GST is rolled out, they hope there will be no changes in the optional CENVAT that is implemented now.

About 60 percent the Indian textile industry is cotton-based and 80 percent of textile and clothing exports are also cotton-based.
According to industry representatives, the textile and clothing sector want the lowest duty slab of 5 percent without exemptions for any segment of the value chain.

Supply chain of Textile Industry is loaded with input and output across state boundaries to reach the ultimate consumer. Octroi and Entry Tax are the bottlenecks, credit of which is not allowable, thus form the part of the cost. Subsume of octroi, entry tax, entertainment tax, luxury tax, etc. into GST likely to remove the cascading effect at the distribution stage.

0

Related Keywords: definitely impact Indian textile industry, different segments of textile industry, five percent under GST, focus on GST, Government already announced special packages, looking for a uniform duty, Made ups, new tax regime, rolled out from July this year, without exemptions for any segment of the value chain

New Delhi
Textile industry seek for a uniform duty of  5pc under GST

The government has already announced special packages for different segments of the textile industry in June last year and for made ups (an article manufactured and/or stitched from any type of cloth, other than a garment) in December. But now the focus is on GST which is a new tax regime and it will definitely impact the Indian textile industry.

The industry was expecting a special package for powerloom sector to be announced shortly but they do not expect any major announcement in the budget, a spokesperson for the industry said.

The textile industry is looking for a uniform duty of 5% under the Goods and Services Tax(GST), which is expected to be rolled out from July this year.

According to M. Senthil Kumar, Chairman, Southern India Mills’ Association, till the GST is rolled out, they hope there will be no changes in the optional CENVAT that is implemented now.

About 60 percent the Indian textile industry is cotton-based and 80 percent of textile and clothing exports are also cotton-based.
According to industry representatives, the textile and clothing sector want the lowest duty slab of 5 percent without exemptions for any segment of the value chain.

Supply chain of Textile Industry is loaded with input and output across state boundaries to reach the ultimate consumer. Octroi and Entry Tax are the bottlenecks, credit of which is not allowable, thus form the part of the cost. Subsume of octroi, entry tax, entertainment tax, luxury tax, etc. into GST likely to remove the cascading effect at the distribution stage.

0

Name Company
Mobile Country
Email Report
Verification
 


Related Keywords
definitely impact Indian textile industry different segments of textile industry five percent under GST focus on GST Government already announced special packages looking for a uniform duty Made ups new tax regime rolled out from July this year without exemptions for any segment of the value chain

 
Let Us Know Your Need
click here icon
 
Pricewatch Enquiry
Name
Company
Phone
Email
Country
 
Word Verification
 
Prices
 
Market Intelligence
  • Polyester Intelligence
    YnFx's Polyester Intelligence Service consolidates all the information at a click. This service provides the following:
    • Daily Price Trends
    • News & Views
    • Weekly Prices on Polyester Chain
    • Price Forecast Covering 3 Regions
    • Spun Yarn Exports from India
    • Polyester Chain - Demand/Supply Statistics
 
Special Reports
 
Country Reports
  •  
    feedback button