Textile industry hoping rates will be reduced to 12%

The textile industry is hoping that the GST Council would consider reducing GST rate

The textile industry is hoping that the GST Council, which is expected to meet today, would consider reducing GST rate on manmade fibres, filaments and yarns to 12 per cent. It feels that the independent weaving unit may have to incur additional cost of over Rs 2 lakh per annum.

At the 16th GST Council meeting on June 11, 2017, it was announced that 18 per cent would be the GST rate for manmade fibres, filaments and yarn. The council has also decided not to allow refund of accumulation of input tax credit at fabric stage that attracts only 5 per