News on the go

 

sanjay jain 

“Oversights and anomalies in GST”- Sanjay Jain

GST would benefit the industry in terms of lower logistic costs, low lead times, make pan India selling easier by removal of Forms needed, reduce administrative hassles by creating a single tax window, reduce costs by allowing taxes in all expenses to be adjusted etc. Overall the industry is very happy with the GST rates and so are the consumers. However, Sanjay K Jain, Chairman NITRA and Vice Chairman CITI says, “There are a few oversights and anomalies which we hope will get corrected in due course”.

The anomalies are as:

• Textiles would have a 18% GST rate. We have represented to the Government with all facts and are hopeful that this shall get suitably modified in the next GST Council meeting

•Fibre and yarn enjoy 18% GST while fabric & garments have 5%. Further this will also lead to flood of imports of fabric as GST on imports will be 5%, while effective tax incidence on domestic fabric will be close to 10%

• This GST structure will lead to more cotton consumption, due to duty variance of 13%. We have requested to reconsider and reduce synthetic yarn duty to 12% .

• Another indirect fallout from GST, is the big threat of  imports of fabric and garments from China, Bangladesh and Sri Lanka.

• Earlier imports had a 12.5% CVD which wasn't adjustable. Now they would attract 5% GST which is adjustable against subsequent sales. Hence post GST the industry will be relatively disadvantaged by 12.5% vis a vis its peers abroad. This could create a very big issue

• He concludes, “We hope the above anomalies are corrected soon, so our Industry can focus on accelerated growth as the uncertainty of GST is over. 

gst

 
 
 
 
 
 
 
 
 
 
 
 
 
Related Articles
Leave a Comment