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

Higher GST on man-made fibre to have negative implications on the industry

Higher GST on man made fibre to have negative implications

 

Man-made fibre and synthetic yarn would be levied 18 per cent tax under GST regime while the fabric only 5 per cent. Industry experts feel that keeping the rates of key inputs at a higher level will negatively the competitiveness of small and medium synthetic textile manufacturers. Stating the same as concern of inverted duty structure problem, Confederation of Indian Textile Industry (CITI) chairman J Thulasidharan, recently said that the textile sector is suffering from various disadvantages like high energy costs and infrastructure bottlenecks. This announcement would further dent the growth of the industry.

Higher GST on man made fibre to have negative implications on the industry

 

According to him, India is already suffering a huge competitive disadvantage in the global textile market as the MMF based textile products are attracting higher rates of import duty. Keeping the GST rates at this rate will undoubtedly cripple hundreds of small and medium synthetic textile manufacturers. He further emphasizes and asked the government to reconsider the rates of MMF products and bring it at 12 per cent. He also pointed out that the high rates announced for MMF fabric and yarn, dyeing and printing units, embroidery items at 18 per cent can lead to an increase in input costs and can adversely affect the entire textile value chain.

Different viewpoints

Giving a different perspective, Synthetic and Rayon Textile Export Promotion Council (SRTEPC) chairman Narain Aggarwal that keeping the GST of 5 per cent on fabrics is quite favourable for the industry. The GST of 18 per cent on synthetic fibre is again not a bad news, because the tax rate is same as it was earlier. Meanwhile, The Southern India Mills’ Association (SIMA) and CITI have appealed to the government to exempt the textile jobs from service tax as it would benefit the predominantly decentralised and MSME nature of the industry, especially the powerloom, knitting, processing and garmenting sectors.

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

Work from Home fuels demand for essential clothing in India

Work from Home fuels demand for essential clothing in India

     The Work from Home trend has boosted the sales of PJ’s in India with knitwear exporters receiving advance payments from European buyers to replenish their stocks for the basic clothing Demand... Read more

Retail sales fall by 67% during June 15-30: RAI survey

Retail sales fall by 67% during June 15-30: RAI survey

       The business of Indian retailers declined by 67 per cent during June 15-30 compared to the corresponding period last year, according to a survey by Retailers Association of India (RAI). In... Read more

Government introduces new e-commerce policy draft

Government introduces new e-commerce policy draft

     The Indian government has introduced a new ecommerce policy draft which plans to appoint an e-commerce regulator to make the industry more competitive which could directly impact Amazon and Google’s... Read more

Make in India fuels revival of leather and chemical industries

Make in India fuels revival of leather and chemical industries

    The ‘Make in India’ sentiment is pervading across all Indian industries particularly leather and chemical industries which are pleading with the government to impose anti-dumping duty on import of Chinese... Read more

Online National Garment Fair scheduled in September

Online National Garment Fair scheduled in September

    The online edition of India’s biggest garment fair for domestic garment manufacturers will be organized from September 02-11, 2020. As per the Clothing Manufacturers Association of India (CMAI), organizer of the... Read more

SOCH launches omni-channel sales platform

SOCH launches omni-channel sales platform

     Mumbai-based SOCH Group has launched the first of its kind omni-channel sales platform ‘This or That’ (ToT) wherein a startup brand can showcase its products and reach out to their... Read more

Omnichannel retail, better product mix to help counter present business environm…

Omnichannel retail, better product mix to help counter present business environment

    Temporary store closures and restricted mobility caused by COVID-19 pandemic is likely to result in a 30-35 per cent in decline in retailer’s revenues for the 1.7-trillion organised apparel retail... Read more

Quicker recovery for small town retailers: Report

Quicker recovery for small town retailers: Report

     Retailers in smaller Indian cities are likely to see business recovery sooner than those in metros thanks to the limited impact of the lockdown, migration to smaller cities and better... Read more

Despite gloom, Indian apparel sales to revive by the third quarter

Despite gloom, Indian apparel sales to revive by the third quarter

    With no orders from domestic retailers for the last two months, the Indian fashion industry seems to have reached a dead end. As retailers are struggling to liquidate existing orders,... Read more

Paramount launches My Personal Safety Kit

Paramount launches My Personal Safety Kit

     Premier textile company, Paramount Group has launched My Personal Safety Kit which safeguards its consumers from coronavirus. The kit contains nine essential protective gears including: Sturdy Safety Face Shield: This shield... Read more

MOST POPULAR NEWS
Go to top

Follow Us On:

Face BookDealersForYou

TWDFUpublications

LNDFUpublications

YouTubeDFUpublications

 Copyright © 2020 DFU Publications. All rights reserved.