R. Senthil, co-ordinator of the waste cotton traders’s association, said raw cotton attracts 1 % cess in the State and waste cotton also attracts 1 % market cess.After the implementation of GST most of the States that were collecting the cess have removed the tax levied on cotton or waste cotton.Tamil Nadu contintues to collect it.
Under GST, cotton attracts 5 % duty. Hence, there is no need for another cess, he said. About 10,000 traders handle up to eight lakh kg of waste cotton a month in the State.
Waste cotton traders in the State have sought removal of market cess on the product.
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