New Delhi, Oct 9 (KNN) With the Goods and Services Tax (GST) Council announcing a set of revisions for different sectors including the textile sector, the industry comprising of a fair share of the Micro, Small and Medium Enterprises as well as the traders have mixed opinion over the announcements.

The GST council meeting headed by the Finance Minister Arun Jaitley recently announced reduction in the GST rates on the man-made fibres and yarn from 18 per cent to 12 per cent. Also the GST rate on zari items has been reduced from 12 per cent to 5 per cent as per the recent revisions.

Responding to the announcements, Southern India Mills Association (SIMA) in a press interview welcomed the decision of the GST council.

SIMA said that earlier the placement of man-made fibres and yarn under 18 per cent and the fabrics under 5 per cent had a condition that no refund of input tax credit would be allowed at fabric stage. This was brought up by multiple industry bodies in front of the GST council as the sector feared that it might result in cost escalation of yarn.

Also there were fears that the high costs might leave the powerlooms out of business, following which the GST council announced revisions.

While the units are happy with the decision, the textile traders have expressed their discontent over the relief measures announced by the council.

Federation of Surat Textile Traders Association (FOSTTA) said that the traders’ community is not very happy with the announcements as on one hand the manufacturing of the textiles have been given relaxations, the traders demands haven’t been considered yet.

Earlier, during the early days of implementation of the Goods and Services Tax, there was a similar difference of opinion among the different stakeholders of the textile industry. While a section wanted to go ahead with the GST and continue production, the other staged protest by closing down their units and market. (KNN/ DA)