Gujarat Textile Industrialists Raise Concerns Over Unchanged 18% GST on Yarn Raw Material
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Prominent Man Made Fibre (MMF) textile associations, led by the Southern Gujarat Chamber of Commerce and Industry (SGCCI) in Surat, held an online meeting to discuss the unchanged 18% GST rate on yarn raw material. Industrialists expressed significant concern that this rate leads to a large amount of inverted duty at the yarn level, causing substantial ITC credit refunds to be deposited with the government. They emphasized that removing inverted duty across the entire MMF textile value chain is crucial for India's textile industry to become globally competitive.
In a nutshell
This issue highlights a critical challenge for Gujarat's vital textile industry, impacting its operational liquidity and competitiveness in the global market. The persistent inverted duty structure at the yarn stage, despite recent GST adjustments at the fabric level, underscores the need for a comprehensive review to streamline the tax regime and support industrial growth.
Source: The Indian Express
