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Related Keywords: compared to cotton sector, consumer market, demand to consider level-playing field, GST Council, man-made fabric sector, Pandesara Textile Association, sectoral co-convener of goods and services tax, SGTPA, South Gujarat Textile Processors Association

The South Gujarat Textile Processors Association (SGTPA) leader recently met the sectoral co-convener of goods and services tax (GST) council Yogendra Garg on Wednesday demanding the council to seriously consider providing a level-playing field for the man-made fabric (MMF) sector compared to cotton sector. GST on MMF yarn is 18 percent whereas on fabric is 5 percent while for cotton yarn and fabric both, the GST rate is uniform at 5 percent.

Related Keywords: comprising of representatives of twenty nine states, GST Council, headed by Finance Minister Arun Jaitley, highest bracket, intermediate goods are taxed, job works for making garments, likely to consider lowering of tax rates, removing anomaly in taxation, tax on final output, to five percent from eighteen percent

The GST Council headed by Finance Minister Arun Jaitley and comprising of representatives of all the 29 states, this week is likely to consider lowering of tax rates for job works for making garments to 5 percent from 18 percent and will be also considering removing anomaly in taxation in cases where the intermediate goods are taxed at the highest bracket than the tax on final output, the source said.

It will be the first full fledged meeting of the GST Council, chaired by Jaitley and comprising state counterparts, after the roll out of the new indirect tax reform on July 1.

Related Keywords: attend the GST meeting, Centre can impose tax on specially designed fabrics, currently twelve percent tax, GST Council, hand woven textiles should be exempted, imposed on textiles, Meghalaya taxation Minister, Meghalaya with support of other northeastern states, scheduled to be held in Delhi on Sunday, seek exemption, Zenith Sangma

Meghalaya taxation Minister Zenith Sangma, who will attend the GST meeting of the GST council scheduled to be held in Delhi on Sunday said that currently 12 percent tax is imposed on textiles and Meghalaya, with the support of other northeastern states, will seek exemption.

Sangma said that the Centre can impose tax on specially designed fabrics, but the hand-woven textiles should be exempted from the purview of GST as a large number of people in the North East depend on textiles for their livelihood.

Related Keywords: brought down from eighteen to five percent, duly addressed by Finance Minister Arun Jaitley, during a press conference, entire textile chain, GST Council, GST on the job work, job work implies, manufacturer sending goods, out of the factory, Smriti Irani, specialized processing job, Union Textile Minister, without having to pay taxes

Union Textile Minister Smriti Irani responding to a question during a press conference today said that 'GST on the job work has been brought down from 18 to five per cent.

It has been duly addressed by Finance Minister Arun Jaitley and the GST Council.

The concern of the textile industry has been addressed by reducing GST rates on job work of textile yarn and fabric manufacturing from 18 to 5 percent and this has been done for the entire textile chain.

Related Keywords: filament, GST Council, job work on garments, knocked doors of the Ministry, other than manmade, seeking clarification over GST rates, services by way of job work on textile yarns, textile fabrics would be brought down to five percent, Tirupur textile industry

Tirupur textile industry has knocked the doors of the Ministry, seeking a clarification over the confustion in GST rates on job work on garments as it has not been addressed. At the June 11 meeting, the GST Council had said that services by way of job work on textile yarns (other than man-made and filament) and textile fabrics would be brought down to five percent from 18 percent.