Higher GST to make textile costlier

Good news from Finance Ministry for textile Industry. Thus Finance ministry decided that there will no taxes on silk and jute fibers. Also, below Rs 1000 will be tax at 5 per cent. GST rate has announced for cotton sector. You can see more on impact of 18 per cent GST on manmade and synthetic fiber industry. Hence, see GST on polyester yarn.

Impact of GST on Textile Industry

Several natural fibers will be tax at rate of 5 percent. But, synthetic fibers and manmade fibers will be tax at 18 per cent. GST rate on cotton is 5 percent. It has hailed by all sections of textile industry.  Also, Texprocil Chairman Ujwal Lahoti is express for maintain low GST rate for cotton.

And he said low rate for cotton will go long way to serve tax compliance. Also, government decision ensures that you will remain competitive in world market. Further, all apparels will attract 12 per cent GST once tax is roll out.

General, 5 per cent GST is high than exist levies on cotton yarn and fabric. Government has fixed 5 per cent GST rate on cotton fiber, yarn and fabric and current prevailing rate of NIL. This means cotton yarn and fabric will now attract 5 per cent make all products costly.

But, in some states value added tax on cotton yarn and fabric has levy at 2-4 per cent. Silk and jute have kept under nil categories under GST. Man-made or synthetic fibre yarn will attract 18 per cent GST.  By announce these rates yet to clarify that textile maker will not given credit outflow.

This mean, an input credit limit will not grant to textiles manufactures said by Jaitley. Hence, input credit will not be use full. Government has applied uniform rate to textile industry has practice in global. So man made fibre tax at cotton will help high investment in sector.

More demand for fabric can be fulfill by synthetic makers. With this, readymade garments will become costly. But, 12 per cent rate for textiles is progress and will lead to growth of entire value. Further, synthetic and other manmade fibers will attract high tax of 18 per cent. And other natural fibers (except silk and jute) will be taxed at 5 per cent. This will also impact cost of sarees. Branded apparel may get costly with implement of GST.

Thus, GST rate for textiles will cut effect of taxes will reduce cost. And also improve competitiveness of textiles exports. GST on cotton yarn and fabric will help producers and encourage farmers to grow more cotton.

With this low rate, Indian producers will become competitive in world. Hence, it helps textiles exports to grow in coming years in India. Further, textile products are become more expensive. But government has fixed high rate under GST. Apart from this, they ensure that every single penny of public money is use in development of state.

Finally, see GST on textiles. Thus for more details see GST rate on textile products. For better understand see excise duty on fabric. Also, check GST rate on yarn. Hence, you can also see HSN code for textile products under GST.

Leave a Reply

Your email address will not be published. Required fields are marked *