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Related Keywords: export, government, GST, India, manufacturing, taxes, Textile Industry, value chain

The textile industry has sought immediate release of refunds under various government schemes to ease the liquidity crunch faced by manufacturers and exporters.

In a joint memorandum presented by seven national-level textile associations and major export promotion councils to the Union Government, the industry said that since the units are facing acute liquidity issues, the government should take steps to release the refund arrears under programmes such as ROSL/ROSCTL, Duty Drawback scheme, GST refunds, and Technology Upgradation Fund scheme.

Related Keywords: fabric, GST, import, India, man-made, MMF, polyester, raw material, technology, Textile, yarn

With production on a nosedive, all is definitely not well in the country’s largest man-made fabric (MMF) hub. Polyester fabric has decreased production by almost half from 13,000 metric tonne (MT)to 7,500MT per annum.

Related Keywords: an embedded tax of central excise duties, Goods and Services Tax, GST, Manohar Lal Khattar, not going to adversely affect, not going to put additional burden on textile, slab of 5 percent tax placed on textile, textile business, the CM of Haryana, VAT on cotton yarn

The Goods and Services Tax (GST) is not going to adversely affect the textile business. As presently, there is an embedded tax of central excise duties of 3.38% and 2.8% of VAT on cotton yarn, therefore, the slab of 5% tax placed on textile is not going to put additional burden on textile, said Manohar Lal Khattar, the CM of Haryana.

Moreover, the cascading effect would be mitigated with the event of the GST and the net effective tax on fabric would be minimal, he said at a seminar on GST for members of Legislative Assembly and officials in Haryana.

Related Keywords: any attempts to convert into organized, demands exempting textile fabric, GST, job work, lead fraternity from across the country in New Delhi, major textile manufacturing and trading hub of India, potentially destroy the sector, road map for the protest, sector is predominantly unorganised, Textile traders and businessmen from Surat

Textile traders and businessmen from Surat, India’s major textile manufacturing and trading hub will lead their fraternity from across the country in New Delhi on June 22-23 to press for their demands for exempting the textile fabric and job work for Goods and Service Tax (GST) and will form a committee to decide on a road map for the protest.

Meanwhile, Rajkot Chamber of Commerce and Industry (RCCI) has also organised a programme in Rajkot for 117 local trade bodies and another 24 from rest of Saurashtra.

Related Keywords: domestic supplies dwindle. Cotton imports this season, GST, highest so far having crossed the thirty to thrity five lakh bale mark, Indian mills began importing in January, limited supplies, local market trends, local prices jumped, settled by mills in South India, some of the contracts cancelled, usually done in second half of crop year

Indian mills has began importing in January as local prices jumped due to limited supplies which is usually done in the second half of the crop year as domestic supplies dwindle. Cotton imports this season have been the highest so far having crossed the 30-35 lakh bale mark. However, according to market reports, some of the contracts are now being cancelled or settled by mills in South India due to local market trends and GST.

Related Keywords: CII Coimbatore Zone, Coimbatore, Experts throw light on tax structure, Good and Service Tax, GST, Indian Chamber of Commerce and Industry, industries gearing up for change, know in details about GST impact, major tax reform, on business, plans series of programmes, SIMA, Textile mills, working capital requirement likely to go up

The Indian Chamber of Commerce and Industry, Coimbatore, plans to have a series of programmes on Good and Service Tax (GST) so that entrepreneurs in each sector will know in details about its impact on their business with the Lok Sabha and the Rajya Sabha passing the GST Bill and the country at the cusp of a major tax reform, industries are gearing up for the change.

Textile Industrial associations are inviting experts to speak to their members on the impact of GST on the respective sectors.

Related Keywords: branded apparels, branded garments put under luxury tax slab, every labeled garment is branded, GST, Implementation of Goods and Services tax, may get costlier, other finished textile products, rise at least three to four percent, textiles coming under merit list of GST, value chain

With the implementation of the goods and services tax (GST) that is expected by April 2017. According to industry and experts, tax incidence on branded apparels and other finished textile products could rise at least three-four percent, assuming textiles come under the merit list of GST with this branded apparel may get costlier.

Related Keywords: attract excise duty, cotton fibres attract none, distorted domestic consumption pattern, duty disparity, Goods and services tax regime, GST, hurting export competitiveness, level playing field vis a vis cotton textiles, manmade fibres, policy maker, prevent domestic producers from scaling up operations, Textile Industry

At present, man-made fibres attract a 12% excise duty while cotton fibres attract none. This duty disparity has distorted the domestic consumption pattern in favour of the cotton fibre, divergent to the global trend. The man-made textile segment long neglected by policy makers, finally expects a “level-playing field” vis-a-vis cotton textiles as the country braces for a goods and services tax (GST) regime.

Related Keywords: an input credit will lead to lowered input costs, boost Indian textile exports, easing the prices, Goods and Services Tax, GST, improve business climat in the country, increase share of export market, introduction of GST, key to facilitate industrial growth, making industry internationally competitive, textiles is concern

The Goods and Services Tax (GST) is seen as key to facilitating industrial growth and improving business climate in the country. A constitutional amendment measure, the GST Bill needs to be passed by a two third majority in both houses of parliament and by the legislatures of half of the states in the country to become law.

Related Keywords: availing cenvat credit, centres move, Cotton textile export promotion council of India, double time limit, GST, impact overall cost, imported raw material, increase in service tax, Make in India campaign, measures for speedy refund, on input to one year, special additional duty, Technology Upgradation Fund, Texprocil, Textile Industry

The Cotton Textile Export Promotion Council of India (Texprocil) welcomes the Centre’s move to double the time limit for availing Cenvat credit on inputs to one year. It has also expected the increase in service tax by two percent to 14 percent to impact the overall cost.

However, RK Dalmia, Chairman, Texprocil said that the government should have announced measures for speedy refund of service tax on export-related services.

The special additional duty on various imported raw material and inputs was announced, but unfortunately no mention of textile items in it.