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SIMA wants 5% GST across textile sector

Oct 01, 2021
SIMA wants 5% GST across textile sector

Coimbatore, Tamil Nadu

The textile and clothing industry has sought a uniform 5% Goods and Services Tax (GST) across the textile value chain.

Ravi Sam, chairman of the Southern India Mills’ Association (SIMA), and vice-chairman Durai Palanisamy told that the cotton textiles sector had a uniform GST rate of 5%. The inverted duty structure is present only in the man-made fibre sector. Reports indicate that the government is looking at 12% rate from January 2022 for fabrics and garments priced less than Rs 1,000.

Ravi Sam said that, if there is uniform rate at 5%, the compliance will be more. He also said that, there will be no revenue loss for the government. The proposed increase in GST will hurt the cotton sector more. The Indian garment industry is largely cotton-based. Cotton garments, including traditional wear such as dhotis and sarees, will turn expensive, hitting the common man. Hence, the government should look at 5% duty across the textile value chain, the association said.

Source: The Hindu

Image Source: Google Images

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