SGCCI Urges Govt to Cut GST on Textile Raw Materials from 18% to 5%

Surat | Gujarat — The Southern Gujarat Chamber of Commerce and Industry (SGCCI) and various man-made fibre (MMF) textile associations across India have represented the chairman of the Central Board of Indirect Taxes (CBIT), Sanjay Agarwal to reduce the GST rate on the first raw material of textiles from 18% to 5%. 

SGCCI vice-president Ashok Jirawala and past president Ashish Gujarati and other representatives of the MMF association met CBIT chairman Sanjay Agarwal in New Delhi and submitted a proposal to reduce the GST rate on the first raw material of textiles from 18% to 5%.

SGCCI vice-president Ashok Jirawala said that the proposal to reduce the GST rate on the first raw material of textiles, paraxylene, caprolactam, MEG, PTA, dissolving grade wood pulp and nylon and polyester chips from 18% to 5% was presented to the Chairman of the Central Board of Indirect Taxes and Customs  Sanjay Agarwal in New Delhi. A detailed presentation was made on why the 18 percent GST rate on the first raw material of textiles is not affordable for industrialists and what adverse impact it may have on investment.

In addition, the textile industrialists had proposed to reduce the 18 percent GST rate imposed by the government on garments above Rs. 2500 to 5 percent. Because, the 18 percent GST rate on garments will be very expensive for the consumers. Therefore, a request was made to the the CBIT chairman to reduce the GST rate from 18 percent to 5 percent. Sanjay Agarwal listened to all the industrialists calmly.

It is worth mentioning here that on the previous date, an online meeting was held on September 9 under the leadership of the sGCCI, in which representatives of all MMF textile associations across India expressed their fear that due to the continued 18% GST rate on the first raw material of textiles, all synthetic yarn spinners in India would be subject to a large inverted duty, resulting in a huge amount of ITC credit refunds of these industrialists being deposited with the government.