Move to defer GST rate revision talks by 3 months to hit 80% garment units

Most such units are jobwork-oriented, can't take 18% tax rate; several workers stand to lose jobs

The GST Council's decision to consider a rate revision only after three months is likely to deliver a severe blow to the country's garment industry, say mill owners. The man-made fibre yarn spinning sector, which was expecting a reduction in rate from 18 per cent to 12 per cent, is likely to take a huge hit.

M Senthilkumar, Chairman, The Southern India Mills’ Association (SIMA) has stated that the entire cotton textile industry is thankful to the Government for bringing cotton textiles and all jobwork relating to textile yarns (other than MMF and filaments) and fabrics under the five per cent