The Confederation of Indian textile industry chairperson stated that the factors such as an increase in import taxes on textiles and reduction of GST rates on synthetic clothes will surely boost the domestic cloths industry.
In the recent 28th GST council meeting, the decision was taken to reduce the GST rates on channel fabric and handloom carpet from 12 per cent to 5 per cent making a lot easier for the textile and power loom industry to grow.
Also, the major factor in the decision is that the government had decided to keep the input tax credit refund making it more secure and healthy for the textile and power loom industry.
In an overall impact of GST rate reduction on textile and power loom industry, the common consumer will be benefitted the most, as lower rates would help the price of the clothes to be in the affordable segment.
In the recent GST council 28th meeting, there were around 88 items on which the GST rates were reduced, including major FMCG products such as refrigerators/washing machines and also on sanitary pads.
There were protest against the GST on textile and synthetic items for a long time, and the decision finally cleared all the issues within the sector.
The industry hopes that the remaining issues related to the textile products will be resolved soon according to the current pace of announcement.
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