ALSO READGST Council meet: New tax regime set for July 1 rollout as all states agree Arun Jaitley promises no surprises in GST rate fixation Convergence of GST tax rates likely in coming days: Arun Jaitley GST impact: Entertainment, cable, DTH to enjoy lower taxes from July 1 GST council reduces taxes on 66 items; rate on lottery tickets undecided
The lowering of GST rates on man-made yarns and job works on zari items and accelerated refunds will provide immediate relief to apparel exporters, the Apparel Export Promotion Council (AEPC) said on Sunday.
These included lowering rates on man-made yarn to 12 per cent from 18 per cent as well as zari job work to 5 per cent from the 12 per cent earlier.
"The changes will give a great relief to the apparel industry for the immediate term as the sector has been facing severe liquidity crunch after the introduction of GST," AEPC Chairman Ashok Rajani said.
AEPC also demanded that the government look into the issue of embedded taxes on exports.
"Since the duty structure remains inverted with fabric at 5 per cent GST, we are hopeful that the embedded taxes arising out of this inverted structure will be refunded to exporters through appropriate mechanisms," Rajani said.