'Uniform rate of 12% for MMF textiles sector to reduce compliance burden'

Removal of inverted tax structure on MMF Textiles value chain and uniformity of rates brings relief to textiles sector, says govt

The government has notified uniform goods and services tax rate at 12% on MMF, MMF yarn, MMF fabrics and apparel, which has addressed the inverted tax structure in the MMF textile value chain, said government on Monday. The changed rates will come into effect from January 1, 2022. This will help the MMF segment grow and emerge as a big job provider in the country, said Ministry of Textiles.

"The Textiles & Apparel (T&A) industry was having long pending (first under sales tax then, under VAT and finally under GST regime) demand for removal of inverted tax structure on manmade