1. GST impact: FY2017-18 will be good year for cotton textile industry, says SIMA

GST impact: FY2017-18 will be good year for cotton textile industry, says SIMA

With a sound tax system and real time governance coupled with availability of surplus cotton, the year 2017-18 will be a good year for cotton textile industry, Southern India Mills Association (SIMA) said today.

By: | Coimbatore | Published: July 1, 2017 7:50 PM
Goods and Services Tax, GST impact, GST, GST launch, GST rollout, GST launch in India, Narendra Modi, Amit Shah, Arun Jaitley, BJP, NDA government, UPA government, Congress, new tax regime, new tax policy, GST, Textile industry, cotton textile industry, SIMA, GST impact Welcoming the GST, SIMA Chairman M Senthilkumar appreciated the NDA Government especially Textile Minister Smriti Zubin Irani for bringing a seamless tax structure for the entire cotton textile value chain at the lowest slab rate of 5 per cent GST rate. (Reuters)

With a sound tax system and real time governance coupled with availability of surplus cotton, the year 2017-18 will be a good year for cotton textile industry, Southern India Mills Association (SIMA) said today. Welcoming the GST, SIMA Chairman M Senthilkumar appreciated the NDA Government especially Textile Minister Smriti Zubin Irani for bringing a seamless tax structure for the entire cotton textile value chain at the lowest slab rate of 5 per cent GST rate. The industry has been suffering with numerous taxes and different types of cess which were adding to the cost indirectly as they were not duty drawback compatible and therefore adding to the cost thus making the industry uncompetitive especially, the MSMEs and decentralised segments, he said.

With the implementation of GST, all indirect taxes would be merged, he said. Tamil Nadu accounted for 1/3rd of the textile business of the Nation and the State Governments especially Tamil Nadu should come forward and remove certain taxes and levies that are not subsumed in GST like Market Committee Fee and various other municipal taxes, Senthilkumar said. He however, expressed disappointment for not considering the genuine demand of reducing 18 per cent GST on Man Made Fibre and blended spun yarn to 12 per cent which will avoid huge inverted duty accumulation at grey fabric stage.

  1. V
    VINOD
    Jul 2, 2017 at 5:57 pm
    Good for Mr Senthilkumar and similar persons..... For small job workers sme, msme a lot more is to be done in the textile chain. Composition scheme to be increased to 1.5 crores per annum and should also be made applicable for outside state / s etc especially for small traders , mfrs. It should be uniform ONE NATION and not for ONLY STATE composition scheme. Composition scheme should not be restrictive with borders. Opportunity should be given to sme and msme to grow in turnover beyond Composition scheme by not insisting on geographic restrictions. Request / appeal to textile minister to look into it.
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