'Positive' about GST rate in Textile industry

‘Positive’ about GST rate in Textile industry

The GST rate of five per cent on the textile sector has seen a lot of ‘positive response’ from the industry. Whether cotton, jute or silk, “we said that the textile sector should have a five per cent GST,” A Madhukumar Reddy, Joint Secretary, ministry of textiles, told Newsmen. The same rate applied to the sale of garments with a value of less than Rs. 1,000.

“In terms of items of mass consumption, the GST rate has been limited to 5 per cent and because of this the entire industry has welcomed it,” he said adding the rate was 18 per cent for Man Made Fibre (MMF) and even in this segment “there has been no increase”.

“On the whole, in the broad sense, there has been a lot of positive response from the industry, on the GST rate, he said.

K Selvaraju, secretary-general, South India Mills Association, also welcomed the GST rate for the textile sector, calling it an excellent tax structure. It would definitely strengthen our industry since we are predominantly cotton-based. Sustainability and competitiveness will sustain,” he said.

A “lot of disparities” have been sorted out by the government ahead of the GST rollout.

“In my opinion, for the first time we are having an excellent tax structure,” Selvaraju said.

– Apparel and Textile News, Apparel Talk, Indian Apparel