GST Bachat Utsav, which was announced by Prime Minister Narendra Modi, and commenced on the 22nd of last month, is benefiting all sections of society. Today Akashvani correspondent brings a report on the tax cut on the textile sector.
In order to provide a major benefit to the common man, the government has lowered the GST on the textile industry. Under the next generation GST reforms the tax rates on Man-Made Fibres has been brought down to 5 percent from previously taxed 18 percent. Similarly the GST on Man Made Yarns has also been slashed from 12 percent to 5 percent providing financial relief to households. Along with this, the GST on readymade garments that costs upto 2,500 Rupees per piece has also been reduced to 5 percent making fashion affordable and boosting demand. This significant reduction in the textiles sector is expected to reduce cost, boost demand and support exports.
The rationalization under GST 2.0 will make Indian garments affordable for middle class and lower income households. This decision will further revive demand, enhance export competitiveness in global markets and support India’s ambition to become a global textile hub.
