Related Keywords: as GST subsumes all taxes including protections, become five to six percent cheaper, Garment imports, Goods and Services Tax, locally made apparel, providing input credits, removal of the special additional duty, SAD, Textile Industry
Garment imports likely to become five to six percent cheaper than locally made apparel despite the goods and services tax providing input credits to the textile industry due to removal of the special additional duty (SAD), as GST subsumes all taxes including protections.
Apparel imports are subject to a countervailing duty (CVD) of six percent on cotton and 12.5 percent on polyester, which importers receive as a central value added tax credit. The CVD is optional at a flat two percent if the importer does not claim a set-off against input costs.
