An association of Indian apparel industry is requesting that readymade garments be included under the ‘Merit List’ of Goods & Service Tax (GST).
MUMBAI: An association of Indian apparel industry has roped in two agencies to prepare a representation which will be submitted to the Central Government requesting that readymade garments be included under the ‘Merit List’ of Goods & Service Tax (GST).
The Clothing Manufacturers Association of India (CMAI) has appointedPricewaterhouseCoopers (PwC) and Wazir Advisors to prepare the representation to be submitted to Ministry of Textiles, CMAI President Rahul Mehta said in a statement here today.
GST, expected to be introduced in April 2016, is anticipated in the range of 20 to 24 per cent. Inclusion under ‘Merit List’ will entail lower tax on readymade garments.
Mehta said the Payment Default Committee of the CMAI has succeeded in recovering Rs 400 crore in dues for its members from January 13, 2015 till date. During the last 7 months of functioning of this Committee, 35 per cent of payment default complaints have been settled.
Mehta was addressing an interactive meeting of garment manufacturers organised by the Conciliation & Arbitration Sub-Committee of CMAI.
The present credit period of 90 to 120 days prevailing in the garment trade in India should be reduced to 7 to 10 days. Such a late payment system only prevails in India. The ultimate aim of the industry should be to achieve a ‘zero credit’ system, he said.
Mehta, who is also Chairman of International Apparel Federation (IAF), shared his dream for CMAI to develop an international exhibition centre in Mumbai like the one in Pragati Maidan in New Delhi.
Source: The Economic Times , PTI