February 06, 2021
Meanwhile, some 400 members operating individual
Meanwhile, some 400 members operating individual mills, under the banner of
Indian Texpreneurs Federation (ITF), in a letter to the Centre, said MMF-based
yarns were brought under 18 per cent, while MMF fabric brought under five per
cent.To buttress his point, he said that an independent weaving unit with around
50 looms and producing functional fabrics 100 per
cent viscose fabric would incur an additional cost of over Rs two lakh per annum
with 18 per cent GST rate on yarn when compared to a composite unit..Coimbatore:
The Textile industry in the region today expressed the hope that the June 18 GST
council meeting would consider reducing the GST rate on Man Made Fibres,
filaments and yarns from 18 per cent to 12 per cent.Even with 12 per cent GST
rate on yarns, the additional cost would be Rs 1.The Government could have
classified the entire textile value chain under five per cent to avoid such
problems or refund the accumulated input tax credit at every stage so that the
cost is not increased, level playing field is created and ensure proper
compliance.3 lakh per loom per year, thus creating an unhealthy competition
between composite and independent weaving units, he said.The differential rates
and non-refund of accumulated input tax credit would not only affect the
industry, but also lead to wrong declaration and corruption, he said. He hoped
that the Council would also include garments, made-ups and other sewn products
related to job work under five per cent GST rate of service tax.ITF secretary
Prabhu Dhamodharan in a statement urged the Council to fix MMF and blended yarns
under 12 per cent rate.This would significantly increase the fabric cost and
seriously affect the independent spinning and weaving sector, including
powerlooms, he said.There would be huge accumulation of excess credit with 18
per cent GST rate on yarn and only five per cent GST rate and non-refund of
accumulated input tax credit at fabric stage, Southern India Mills Association
(SIMA) Chairman, M Senthilkumar said in a statement here
Posted by: stretch,functional fabrics Suppliers at
01:02 AM
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