GST influence on Garments industry

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Sewing background with color threads, meter and scissors

Union Minister of Textiles, Smriti Zubin Irani said, GST on garments is 5% of sale value, not exceeding Rs. 1000 per piece and made-up articles carry GST of 12% of sale value exceeding Rs. 1000 per piece, lesser than the pre-GST incidence.

Directorate General of Commercial Intelligence and Statistics’ data shows increased exports of textile, garments and handicrafts from USD 40.1 billion in 2014-15 to USD 40.4 billion in 2018-19.

Boost to textile industry

Government’s Special Package offers – RoSCTL (Rebate of State and Central Taxes and Levies) scheme, additional incentives under Amended Technology Upgradation Fund Scheme (ATUFS), labour law reforms and relaxation of Section 80JJAA of Income Tax Act.

Powertex scheme for fabric segment, ATUFS for all except spinning segment and Scheme for Integrated Textile Parks (SITP) for all segments increase competitiveness of fibre, yarn and fabric in the industry.

Government has enhanced rates- from 2% to 4% for garment and made-ups and from 5% to 7% for handloom and handicrafts with increased interest equalisation rate from 3% to 5% extending benefits of Interest Equalization Scheme to merchant exporters and manufacturing exporters. Government has increased Basic Customs Duty from 10% to 20% to minimise imports.
With a cost cutting of fibre yarns from 18 to 12%.

Source : https://www.newdelhitimes.com/gst-influence-on-garments-industry/

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