Feedback
A pioneer B2B media and publication platform connecting with Fashion Brands & Retail in India

GST council cuts rate to 5 %, great relief to Indian textile, garment industry

GST council cuts rate to 5 great relief to Indian textile

This 5 percent GST rate reduced from 18 per cent announced earlier, will be applicable for job works in apparel, shawls and carpets.

Acceding to demands from the industry, The Goods and Services Tax (GST) Council decided to reduce the GST rate on all job works related to the textile and apparel sector to 5% from 18%. In case of some sectors like yarns and fabrics, the tax on job works was earlier slashed to 5%, but with Saturday’s decision, the benefit of lower tax will be available to all job works in the sector. In a move that would cut the cost of project execution in the government sector, the GST on work contracts in the state-sector has been reduced 18% to 12% with full input tax credit.

SIMA hails GST reduction on textile job work.

GST council cuts rate to 5 great relief to Indian textile garment industry

The Southern India Mills Association (SIMA) welcomed the centre's move to bring down the GST rate on textile job work from 18 per cent to 5 per cent. All the textile job works, being the manufacturing activities, had been exempted from the service tax in the pre-GST regime. But, the job workers could not avail the input tax credit that had been increasing the cost of the products and affecting the export competitiveness and also the domestic consumers, a release from SIMA said.

Therefore, the industry has been demanding to classify all the textile job works under 5% GST rate service list. But, the GST council had classified only the textile yarns (other than MMF and filament) and textile fabrics under 5% and therefore all other job works especially garments and made-up that creates 70 to 120 jobs per Rs 1crore of investment, especially for the rural masses and women folks were affected due to inverted duty. In addition, over 85% of the textile manufacturing units under take only job work.

M Senthilkumar, chairman of SIMA said 5 per cent GST rate on job works would enable to take full input credit and also avoid any inverted duty and strengthen the global competitiveness of the textile industry apart from benefiting the domestic consumers.

Garment manufacturers cheer GST rate cut in job work.

Garment manufacturers too have welcomed the government's decision to cut service tax (goods and services or GST levy) on the third-party services popularly known as job work.

"We welcome the decision. This is a major relief for the garments sector. The rate of 18 per cent was the biggest impediment for the growth of the garments sector. With this relief garment sector in India will see a major jump in coming days," said Rahul Mehta, President, Clothing Manufacturers Association of India.

In the unorganised garment sector, almost 75 per cent depends on job work such as stitching, trading and other associated work. The sector feared hundreds of thousands of job losses with high tax on third party work.

LATEST TOP NEWS
  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10

Traditional retailers adopting tech to enhance in-store experience

Traditional retailers adopting tech to enhance in-store experience

The growing expanse of e-commerce is pushing traditional retailers to opt for innovative technologies to craft out experiences that stretch beyond a mere purchase. From 3D, VR, lawns, basketball courts,... Read more

HGH India 2018 ended on a promising note with good business deals

HGH India 2018 ended on a promising note with good business deals

The 7th HGH India trade show for home textiles, home décor, houseware, and gifts gathered an overwhelming response from trade visitors and industry. Close to 34,960 trade visitors, primarily retailers,... Read more

Pepe Jeans makes a mark with jeans customisation

Pepe Jeans makes a mark with jeans customisation

First to introduce the denim customisation service in India in October 2015, the Pepe Jeans Custom Studio service enables customers to customise their denim in a few easy steps. Widely... Read more

Changing buying habits of New Age men influence brand’s marketing initiatives

Changing buying habits of New Age men influence brand’s marketing initiatives

It was in 1992, that Raymond Apparel released its iconic ad campaign – The Complete Man which brought men’s fashion out of its closet. The campaign portrayed the emergence of... Read more

TT Ltd plans to expand in Central and Western India

TT Ltd plans to expand in Central and Western India

Focusing more on casual wear range such as bottoms and T-shirts, TT Ltd continuously upgrades its products to cater to the growing demands of its consumers. “We use mélange, off... Read more

National Garment Fair, India’s biggest garment fair is on in Mumbai till July 19

National Garment Fair, India’s biggest garment fair is on in Mumbai till July 19

The National Garment Fair organized by the Clothing Manufacturers Association of India (CMAI) was inaugurated by chief guest Kishore Biyani, Group CEO – Future Group at Bombay Exhibition Centre, NSE... Read more

Cool Colors expects 40 per cent growth in business this festive season

Cool Colors expects 40 per cent growth in business this festive season

Cool Colors’ new collection of blazers and T-shirts under ‘The Global Traveller Campaign’ includes prints and patterns along with a range of classic designs like prints, checks and plains. The... Read more

Dollar Missy aims at inorganic growth through M&A

Dollar Missy aims at inorganic growth through M&A

"Women’s brand Missy offers capris, kurtas, pants and leggings in trendy designs and textures that gives it a completely new look. “We have raised our bar from routine black and... Read more

Arrow unveils revamped store at High Street Phoenix

Arrow unveils revamped store at High Street Phoenix

Arvind Fashions subsidiary of Arvind Ltd, India’s largest integrated textile player recently launched stores of marquee retailers Gap and The Children’s Place. Arvind is one of the largest producers of... Read more

Ashapura Intimates on a strong footing for positive growth ahead

Ashapura Intimates on a strong footing for positive growth ahead

Ashapura Intimates Fashion (AIFL) sales increased 84 per cent to Rs 141 crore while operating profit jumped 73 per cent year-on-year in Q4 2018. Consolidated topline recorded Rs 344 crore,... Read more

MOST POPULAR NEWS
Go to top