Textile associations discuss GST rate on yarns in an online meeting led by SGCCI

In recent meeting led by the Southern Gujarat Chamber of Commerce and Industry (SGCCI), prominent man-made fiber (MMF) textile associations from across the country met to discuss the Goods and Services Tax (GST) rate on yarns. Participants including the Confederation of Indian Textiles, Southern India Mills Association(SIMA). Metaxil SRTEPC, Nylon Spinners Association, New Delhi Textile Association, Association of Synthetic Fiber Industry, Polyester Textile Apparel Industry Association and Pedexil were concerned about keeping the 18 per cent GST rate on yarn raw materials unchanged. They felt it would result in a significant amount of input tax credit (ITC) refunds being deposited with the government.

All associations unanimously agreed that while recent changes by the Central government have removed the inverted duty at the fabric level, a ‘very large amount’ of inverted duty still exists at the yarn level. According to sources at the SGCCI, There should be no inverted duty anywhere in the entire MMF textile value chain. When we remove inverted duty from the chain, India’s textile industry will become globally competitive.