GST for textile sector corrrected, says Irani
Reclassification of micro, small and medium size enterprises (MSMEs) and 5% reduction in tax on annual turnover of companies up to Rs.250 crore will help manufacturing and increase employability in textiles sector.
Highlighting this, Textiles Minister Smriti Zubin Irani said the increase in customs duty on silk and man-made fibre will discourage cheap Chinese textile products from flooding the Indian market and benefit domestic manufacturers in the power loom sector.
Of the Rs.6,000 crore special package announced in 2016 for the textiles sector, Rs.1,800 crore have already been released and Rs.300 crore will be released during the current financial year, the minister said.
Speaking to media on 13 Feb 2018, Irani highlighted about 100% increase in allocation for skill development in Textiles sector.
The correction in the Goods and Service Tax (GST) rates on hand made and machine made garments has created ease of doing business in these sectors, according to Irani.
GST rate has been reduced on yarn from 18% to 12% and GST on job work has been brought down from 18% to 5%.
Support for merchandise scheme has been enhanced from 2% to 5% for the apparel sector.
Irani attributed 16% growth in apparel sector to the effective implementation of subsidy schemes. Rs.138 crore has been disbursed to 28,000 weavers as Mudra loan and 1.8 lakh garment workers have formally joined Employees Provident Fund Organisation (EPFO). fii-news.com