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Textile industry welcomes reduction in GST for MMF yarn

Press Trust of India  |  Coimbatore 

Southern Mills Association (SIMA) today said that the reduced rate of for MMF yarn from 18 to 12 per cent would benefit the spinning and power loom sector.

In a statement, SIMA chairman P Nataraj said that the man-made fibres (MMF) and yarns were slotted under 18 per cent rate while the fabrics under five per cent with a condition that no refund of Input Credit would be allowed at fabric stage.

This was creating a huge inverted duty problem for the synthetic sector and inflating the cost of synthetic products that already had serious threat by cheaper

The industry has been pleading the Council to reduce MMF yarn rate to 12 per cent to avoid cost escalation of yarn and facilitate the power loom sector to remain competitive, Nataraj said.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Sat, October 07 2017. 17:02 IST