Gujarat textile processors demand for uniform GST for MMF yarn, fabric

The South Gujarat Textile Processors Association (SGTPA) leader recently met the sectoral co-convener of goods and services tax (GST) council Yogendra Garg on Wednesday demanding the council to seriously consider providing a level-playing field for the man-made fabric (MMF) sector compared to cotton sector. GST on MMF yarn is 18 percent whereas on fabric is 5 percent while for cotton yarn and fabric both, the GST rate is uniform at 5 percent.

The association said that polyester fabric is known as the fabric of poor. Surat’s textile sector manufacture saris below Rs 200. On the other hand, the cotton fabric is for the elite class. However, the central government has divided the MMF and cotton sectors by keeping separate GST rates for yarns and fabric.

According to SGTPA president Jitu Vakharia, at present, the textile sector is facing a lot of difficulties and challenges due to the differential GST structure for the MMF sector. Most of the weaving units doing job work has almost shut the shops More than 50,000 workers have been rendered jobless in the last two months.

President of the Pandesara Textile Association Kamal Tulsiyan said that the government must seriously think about the MMF sector, otherwise it will be ruined in the coming days. The downfall of the sector has started.

The co-convener of GST Council have been strongly recommended to keep the GST rates uniform in both the sectors. If the GST rates in both the sectors are uniform, then the textile sector will have a level playing field in the consumer market.