SIMA wants 5% GST across textile sector
The textile and clothing industry has sought a uniform 5% Goods and Services Tax (GST) across the textile value chain.
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
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Source: Google Images
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