Search Results for: Textile industry

Textile ministry examining service tax issue, industry ‘positive’ about GST rate: Official

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The GST rate of five per cent on the textile sector has seen a lot of “positive response” from the industry, a top Central government official said today. 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 reporters here. The same rate applied to the sale of garments with a value of less than Rs. 1,000, he added. “In terms of items…

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Textile bizmen relieved after GST Council stays tax hike

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City businessmen into textiles and garments have heaved a sign of relief after the GST Council, in its meeting held on Saturday, did not hike the rate of 5% GST applicable on some fabrics and garments costing below Rs1,000. Earlier, there were hints from the central government that the 5% slab of GST would be abolished, and the minimum GST on fabrics and garments would be 12%. Welcoming the decision, Knitwear Club finance secretary Harish Kairpal said, “We are thankful…

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Government to push for lower GST on auto, textile sectors

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The Central Government would like the Goods and Services Tax (GST) Council, slated to meet later this month, to address the distress in India’s export sector on account of the US withdrawing preferential trade terms and an ongoing global slowdown by tweaking the GST rate on products which figure heavily in India’s export basket. There is a strong demand, among others, for reducing GST on auto parts and some textile goods, which the Central Government is likely to support. It…

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GST rate cut impact: Synthetic textiles to be 5-7% cheaper from August

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Synthetic manufacturers are planning to cut the prices of their products by at least 5 per cent from August following the government’s decision to reduce the effective GST (goods and services tax) rate on its raw materials by 7 per cent from July 27. The GST Council in its meeting held on Saturday had decided to allow input credit on manmade fabric equivalent to 7 per cent. This will provide a level-playing field to synthetic textile manufacturers through a uniform…

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GST effect: Textile sector in Telangana losing competitive edge

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To ease the pains caused by Goods and Service Tax (GST) on small scale textile manufacturers, the Telangana state government earlier this month had brought out a textiles and apparel policy. The policy speaks of incentives and land allocation for a mega-textile park, however, the sector has responded with mixed reactions. Textile sector exporters have had to keep their selling prices high mainly due to stiff competition from China and Bangladesh and a strong rupee. Following which export orders that…

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GST Council forms 18 groups to sort out industry worries

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The GST Council has set up 18 sectoral groups to interact with the sectors like telecom, banking and export and sort out their issues in a time-bound manner for a smooth transition to the new indirect tax regime. These sectoral working groups consist of senior officers from the Centre and states and they will interact and examine representations received from trade and industry associations/ bodies of their respective sector. Also, the groups will highlight specific issues for the smooth transition…

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Six lakh new traders registered in Maharashtra state as taxpayers under GST

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OVER 6 lakh new traders have registered themselves as taxpayers under the Goods and Services Tax (GST) in Maharashtra so far. These traders were earlier out of the tax net under the Value Added Tax (VAT) and excise duty system. The GST, a comprehensive indirect tax system, was rolled out on July 1, 2017, and was expected to bring many new industries into the tax fold. Data from the state GST department shows that most of the new traders registered…

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GST Council eases rules, cuts rates: Check out the new tax rates for about 42 items in 3 tables

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Facing severe criticism over the implementation of goods and services tax (GST), the government on Friday announced a slew of measures to ease the concerns of traders, exporters and small business. The GST Council meeting also slashed rates on 27 items of common consumption, including roti, khakra, namkeens, stationery and man-made yarn — with most of them brought to five percent category. Tax rate on man made yarn was reduced to 12 percent from the current 18 percent, which is expected…

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GST rates may rise on mobiles, footwear

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Ahead of the Goods and Services Tax (GST) Council meeting on Saturday, the government is pushing for a review of the levy on mobile phones, footwear, fertiliser and man-made fibres to correct a major discrepancy that has crept in where the duty on the finished product is lower than those on inputs. The “inverted duty structure” is resulting in massive refund claims on tax paid on inputs, although the government does not allow credit for levies on input services and…

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GST Council meet: Rate cut for auto sector may not be easy; relief on hotel tariffs, biscuits on the cards

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The GST Council meeting, as per the agenda paper, may take up automobiles, hotels, biscuits, matchsticks and outdoor catering segments for resetting of the GST rates. However, all listed items may not see GST cut due to various complexities involved With the government desperate to reverse the prevailing economic slowdown, the GST Council is all set to make major announcements on Friday. The high-powered GST Council will discuss the agendas on tax cuts for sectors with the high-consumer interface or…

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