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MMF Industry wants revised GST | India GST | Textile GST |

MMF Industry wants revised GST

The manmade fiber textile industry is disappointed with the GST rates.

It feels lack of uniformity in GST rates for the textile sector will adversely affect growth sentiments and exports and badly hit employment generation.

The manmade fiber textile sector has been pleading for a uniform tax rate of five per cent across the value chain to rejuvenate the entire textile sector. It says the high GST rates of 18 per cent for manmade fiber and yarn, dyeing and printing units and 12 per cent on embroidery items can lead to an increase in input costs and will affect the entire textile value chain adversely.

The industry wants a revision of the higher GST rates announced for manmade fiber products—either a uniform rate with other verticals or lowered to 12 per cent from the current 18 per cent.

India already is reeling under a huge competitive disadvantage in the international textile market when it comes to manmade fiber based textile products. Competitors like China, Vietnam and Bangladesh are ahead in global exports of manmade fiber textiles.

Another area of concern for the industry is the non-allowance of refund of accumulated credit for the textile sector. It says this will affect the entire processing, embroidery and job works segments since the job works segment is the weakest link in the entire value chain of the textile sector

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