Govt notifies 12% GST rate on MMF, yarn, fabrics from Jan 1
The finance ministry has notified uniform 12 percent GST rate on manmade fibre (MMF), yarn, fabrics and apparel, thereby addressing the inverted tax structure in the MMF textile value chain.
Currently, tax rate on MMF, MMF yarn and MMF fabrics is 18 percent, 12 percent and 5 percent, respectively. The taxation of inputs at higher rates than finished products created build up of credits and cascading costs. It further led to accumulation of taxes at various stages of the MMF value chain and blockage of crucial working capital for the industry.
The GST Council, chaired by Union Finance Minister Nirmala Sitharaman and comprising state finance ministers, had in its previous meeting on September 17 decided that the inverted duty anomalies in the textile sector would be corrected from January 1, 2022. Giving effect to this decision, the Central Board of Indirect Taxes and Customs (CBIC) on November 18 notified 12 per cent GST rate for MMF, MMF yarn and MMF fabrics.
Experts said though there is a provision in GST law to claim the unutilised Input Tax Credit (ITC) as a refund, there were other complications and resulted in more compliance burden. The inverted tax structure caused an effective increase in the rate of taxation of the sector.
The world textiles trade has been moving towards MMF but India was not able to take advantage of the trend as its MMF segment was throttled by the inverted tax regime, they said, adding the correction in duty anomaly will help the segment grow and emerge as a big job provider. EY Tax Partner Bipin Sapra said the rate changes in the textile industry is the first of the changes promised by the GST Council with an aim to rectify inverted duty structure and bring an efficient tax structure for a given sector.
Next Story :
-
Hyderabad DCC to launch awareness campaign for caste census
![Hyderabad DCC to launch awareness campaign for caste census]()
Hyderabad, November 2: Telangana Pradesh Congress Committee (TPCC) president Mahesh Kumar Goud has instructed Congress workers across the Hyderabad district to ensure efficient coordination for a successful caste census being conducted by the state government.
-
Special Buses For Devotees To Shaivite Shrines During Kartika Masam
![Special Buses For Devotees To Shaivite Shrines During Kartika Masam]()
Hyderabad, Nov 2 (Maxim News): Special buses were being arranged for the convenience of devotees to famous Shaivite shrines during the holy month of Kartika, announced Telangana State Road Transport Corporation (TGSRTC) Managing Director VC Sajjanar here on Saturday. These special buses will be run from Hyderabad to Srisailam, Vemulawada, Dharmapuri, Keesaragutta, and other temples.
-
Cruise Ship Service From Nagarjuna Sagar To Srisailam Launched
![Cruise Ship Service From Nagarjuna Sagar To Srisailam Launched]()
Nagarjuna Sagar/Hyderabad, Nov 2 (Maxim News): Tourists and nature lovers have been waiting for the boat journey from Nagarjuna Sagar to Srisailam on the first day of the month of Kartika started by the Telangana Tourism Department.
-
Man Involved In Forgery And Cheating Arrested
![Man Involved In Forgery And Cheating Arrested]()
Hyderabad, Nov 2 (Maxim News): The EOW Police of Cyberabad arrested an accused person, Udandapuram Narsimlu, R/o Shivampet Mandal, Medak district who was involved in forgery and cheating. The accused has created the fabricated and forged documents in respect of government land of Allipur village, Shivampet Mandal, Medak district and made believe the complainant as…
-
Yakutpura Fire Accident: Death Toll Surge To Three
![Yakutpura Fire Accident: Death Toll Surge To Three]()
Hyderabad, Nov 2 (Maxim News): A teenager Shruthi Gupta, who was injured during a fire accident at Chandanagar, Yakutpura last week, passed away while undergoing treatment at Gandhi Hospital early on Saturday.
Now you can get latest stories from Indtoday on Telegram everyday. Click the link to subscribe. Click to follow Indtoday Facebook page and Twitter and on Instagram. For all the latest Hyderabad News updates
