GST on textiles: Uniform tax rate through the entire chain is need of the hour

A specific rate of duty also needs to be imposed during import of fabric

In a welcome move, the government has addressed the issue of fibre neutrality in the recently announced Goods and Services Tax (GST) rates on textiles.

Fibre neutrality was a long-pending demand from leading trade associations, export councils, and local trade bodies of textile-centric states, though the target has moved from fibre to fabric.

While being a highly decentralised sector, textile is the country's second-largest employment generator, involving multiple processes — from fibre to garment. The product changes lots of hands till it is ready to be worn by the consumer. The involvement of a large number of people in different