Surat: In online meeting, industrialists express concern over unchanged GST rate on yarn raw material

Industrialists expressed fear that a large amount of ITC credit refund will be deposited with the government due to the 18% GST rate remaining unchanged on yarn raw material, said the participants in the meeting.

Representatives from Confederation of Indian Textiles, Southern India Mills Association, Metaxil SRTEPC, Nylon Spinners Association, New Delhi Textile Association, Association of Synthetic Fibre Industry, Polyester Textile Apparel Industry Association, Pedexil and PTA User Associations participated in the online meeting.

All the associations were unanimous that though inverted duty has been removed at the fabric level in the recent changes in GST rates made by the Central government, a “very large amount” of inverted duty is there at the yarn level. “There should be no inverted duty anywhere in the entire MMF textile value chain. When we remove inverted duty from the chain, India’s textile industry will become globally competitive,” said sources in SGCCI.