Textile sector seeks 5% taxes under GST across all value chains

Uniform 5% rate will boost production and help create 35 mn jobs and attract $200 bn by 2025

The textile industry has urged the government to apply the lowest GST rate of 5 per cent across all value chains in the textile and apparel sector, to avoid any possibility of tax evasion.

While the final decision on the rate is yet to be decided, the draft rules propose four slabs -- 5, 8, 12 and 18 per cent of tax under GST. Currently, the applicable rates vary between 5 and 7 per cent, depending upon the use of raw materials and production of finished products.

In a representation to the Ministry of Commerce, apex industry body,