Home Fashion 5 per cent GST rate on textile sector garners positive response

5 per cent GST rate on textile sector garners positive response

By  
SHARE

The 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.

5 per cent GST rate on textile sector garners positive response
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

According to a PTI report: Whether cotton, jute or silk, “we said that the textile sector should have a five per cent GST,” Joint Secretary, Ministry of Textiles, told PTI.

The same rate applied to the sale of garments with a value of less than Rs. 1,000, he added.

“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 was quoted by PTI as saying.

Briefing reporters here about Textiles India 2017, an international exhibition scheduled later this month, Reddy said 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 was further quoted by PTI as saying.

, 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 told PTI.

The net increase on the common man will be “very negligible,” he added.

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,” he was further quoted by PTI as saying.

Earlier, briefing about the Textiles India 2017 event, Reddy said it will be held from June 30-July 2 in Gandhi Nagar, Gujarat, with Prime Minister Narendra Modi slated to inaugurate the international exhibition.

The exhibition will showcase India’s strength in the entire textile and apparel value chain from fibre to fashion, he said.

Various countries including China, the US, Bangladesh and Vietnam among others would participate in the event, he said adding, about 2,500 international and 15,000 domestic buyers were likely to attend the three-day expo.