TEA Appreciates Reduction of GST rate for Job Work

TEA Appreciates Reduction of GST rate for Job Work

Tirupur Exporters Association (TEA) President, Raja M Shanmugham hailed the finance minister Arun Jaitely and GST council for the decision to reduce GST rate for textiles and wearing apparel manufacturing job work services from 18 per cent to 5 per cent.

In a press release Shanmugham said the much required decision is a big relief to the Tirupur knitwear garment sector as all the intermediate processes of garments are being carried out by job working units, mostly MSMEs. This has avoided the apprehension of job working units in blocking of working capital and those would not be in a position to take input tax credit. He said the benefit to the textile industry will be helpful for creation of more employment mainly women workers hailing from rural areas.

Shanmugham also appealed for reduction of GST rate fixed for MMF yarn from 18 per cent to 5 per cent or at least to 12% to pave way for the increase usage of synthetic garments and thereby, the common people would get benefited.

–¬†Apparel and Textile News, Apparel Talk, Indian Apparel