Three months after rolling out the country’s new indirect tax regime, the GST Council has announced some relief measures yesterday. According to a report by The Indian Express, a number of these measures will help enterprises and exporters from Gujarat. Interestingly, the state will go to polls by the end of this year. The slew of measures includes revised tax slabs for the man-made filament, synthetic yarn and fibre, a staple input of Gujarat’s massive man-made textile industry’ concessions for cullet and scrap glass, as well as at least two food items that come predominantly from Gujarat. Out of the 27 categories that have seen a reduction in the tax rates, Gujarat is a dominant player in at least eight segments, as per IE report.
Sewing thread of man-made filaments and thread of man-made staple fibres, artificial filament yarn such as viscose and rayon, synthetic filament yarn (nylon, polyester); as well as the yarn of man-made staple fibres are among the eight categories in which Gujarat leads. These categories have seen a rate cut from 12 per cent to 5 per cent, as per IE.
The GST rate of food industry like khakhra and namkeens also came down from 12 per cent to 5 per cent. The council has also cut down the tarrif on “cullet or other waste or scrap of glass,” in which Gujarat’s Morbi and Vadodara has a significant industrial footprint, the report said.
Gujarat will also be helped by the slew of relief measures for exporters. Currently, the state accounts for 12 per cent of India’s textile exports. The manufacture of manmade filament fibre (around 38 per cent of India’s total production) and manmade fibre (around 31 per cent) is also the highest in the state. The state is also a major hub for exports of gem and jewellery which accounts for more than 90 per cent of diamond export from India, as per IE.