How GST has impacted the textile industry?
Excerpts from the Article – “In the pre-GST era, textile industry mainly operated under duty exemption mode. The benefit of CENVAT credit was not available to manufacturer availing duty exemption which got baked at the cost of the product. Further, many persons operated on a small scale and were either unregistered persons or took registration under composition scheme which again disrupted the flow of credit and leads to cascading effect.”
“Under GST, Government has withdrawn the optional exemption route and imposed GST on textile industry (supply of fabric attracts GST@5%, cotton fiber and yarn attracts GST@5%, Synthetic yarn, and Man-made fiber attract GST@18%). An attempt has been made to organize a fairly unorganized sector. If the players in the textile industry get themselves registered, it would enable a flow of credit to the end consumer and lead to the reduction in prices of the manufactured product” To Read the full Article Click here
This Article has been published in Indian Retailer on November 6, 2017