客服热线:0086 18633257106

Blog

Textile industry welcomes rate reduction for job work

2017-04-04   click:

Welcoming the GST council’s decision to reduce the rate for job work from 18 % to 5 % for weaving, processing, and knitting, the textile industry here has sought reduction of the rate for garment and made ups too.

Job works for this sector still comes under 18 % slab, said J. Thulasidharan, chairman of Confederation of Indian Textile Industry, in a press release. The 18 % rate for made ups and garments will escalate the price of the end product, he said.

With regard to some of the speciality textile fabrics, that remain under the 12 % slab, Mr. Thulasidharan said this would be unsustainable. The input credit was meagre for many of these fabrics and hence the prices would go up. Similarly, the GST for man-made fibre and yarn should be reduced to 12 %. If the government was unable to revise the rates for MMF, it should allow refund of unused credit that was accumulated at the stage of fabric manufacturing, he said.

 

Chairman of Southern India Mills’ Association M. Senthil Kumar said in a press release that the rate for job work for any sewn textile product should also be reduced to 5 %. The term fabric applied only till the stage where the fabric was cut to be stitched.

In the case of MMF, he said that the 18 % rate would increase the cost of synthetic products which were pre-dominantly made in clusters such as Surat and Bhiwandi.

Synthetic fibre should be made available at internationally competitive prices for the industry to grow in the country and this was an opportunity to bring down the rates for it, he said.

Online message
    Message
    Blog