Textile industry welcomes reduction in GST for MMF yarn

Updated: Sat, Oct 07, 2017
04:59 pm
PTI
RELATED NEWS
Oil prices edge up, but set for weekly loss on stock build, trade row Oil prices edge up, but set for weekly loss on stock build, trade row
Gold edges higher as Asian shares slip Gold edges higher as Asian shares slip
DowDuPont to take $4.6 bln charge in agriculture unit DowDuPont to take $4.6 bln charge in agriculture unit

Southern India Mills Association (SIMA) today said that the reduced rate of GST for MMF yarn from 18 to 12 per cent would benefit the spinning and power loom sector.

In a statement, SIMA chairman P Nataraj said that the man-made fibres (MMF) and yarns were slotted under 18 per cent GST rate while the fabrics under five per cent with a condition that no refund of Input Tax Credit would be allowed at fabric stage.

This was creating a huge inverted duty problem for the synthetic sector and inflating the cost of synthetic products that already had serious threat by cheaper imports.

The industry has been pleading the GST Council to reduce MMF yarn rate to 12 per cent to avoid cost escalation of yarn and facilitate the power loom sector to remain competitive, Nataraj said.

 

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)

By continuing to use the site, you agree to the use of cookies. You can find out more by clicking this link

Close