Textile Industry bats for 5% GST rate; submits memorandum to Smriti Irani

New Delhi, May 3 (KNN) The South-Indian textile industry has requested for the lowest slab on textile and apparel under the upcoming GST regime that is expected to be implemented from July 1, 2017.

Currently the textile chain enjoys zero per cent central excise benefit under the optional Cenvat provisions. Stating the need to support the sector to adapt to the change in taxation policy, the industry proposed that a uniform 5 per cent GST on all textile and apparel product will help facilitate the migration to the GST ensuring better compliance.

Talking to KNN, Suresh Ananda Kumar, Secretary of the Southern India Mills Association (SIMA) said that their association has proposed the lower slab rate for the textile industry considering the nature of the industry. He also informed that they have submitted a memorandum to the textile minister Smriti Irani in this regard.

The Association also stated that the deserving sectors such handlooms should be given the benefit of tax rebate under direct benefit transfer system.

Apart from the request regarding GST, the memorandum also requested the Prime ministers’ office and the Ministry of Commerce to consider concluding free trade agreements with the potential importing countries to help prevent the Indian textile industry falling sick of unhealthy competition. This comes in the aftermath of the rising rupee and high import tariffs of almost 20 per cent on textile products in almost all the importing companies. (KNN/ DA)