What does the Indian industry think about GST coming?

Khattar, Chief Minister of Hayana State, India, said that before July 1, Indian cotton yarn had a central tax of 3.38% and a value-added tax of 2.8%. After July 1, the cotton yarn tax rate will be adjusted to 5%. Therefore, the Indian GST unified tax will not have a negative impact on the textile industry. The waterfall effect of GST will be integrated, and the actual impact on the weaving industry will be minimal.

The minister said that the annual inflation rate in India is 6-8%, and the unified GST tax on the textile industry will not affect the development of the industry. On the contrary, the GST will combine various taxes (including value-added tax, central consumption tax, and service tax). Integrate all supply links in the industrial chain to improve textile business and transparency.

The South India Textile Mills Association (SIMA) expressed high appreciation for GST, saying that GST will bring benefits to the cotton textile industry in 2017/18. In the future, the Indian cotton textile industry will operate under a good tax environment, real-time regulation by the government, and sufficient cotton supply. In the past, the Indian textile industry had various types of taxes, and there was no tax refund, which indirectly brought many additional costs to the industry and made the industry uncompetitive.

SIMA stated that with the implementation of GST, all indirect taxes will be combined, and Tamil Nadu, whose textile production accounts for 1/3 of the country, will benefit from this, but at the same time, the tax rates for man-made fibers and blended yarns cannot be increased from It is a pity that 18% has been reduced to 12%. The 18% GST will significantly increase the price of gray fabrics in India and cause the import of gray fabrics to surge. The GST Council’s plan to revise the tax rate in three months will greatly affect the production of chemical fiber yarns and gray fabrics. What does the Indian industry think about GST coming?

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