On this Independence Day, from the ramparts of the Red Fort, Prime Minister Narendra Modi announced the next generation of GST reforms. His vision was realised on the 3rd of this month, when the GST Council reduced tax rates in many sectors to ease the lives of citizens. The new rates will come into effect from the 22nd of this month, benefiting the public. Today, we take a look at the Textile Sector.
Akashvani Correspondent Report: The big tax cut on the textile industry under the next generation reforms has eased the financial burden on the common man. The GST rates on Man-Made Fibres have been brought down to 5% from the previously taxed 18%. While the GST on man-made yarns has been slashed from 12% to 5%. This rationalisation in the textiles sector is expected to reduce costs, boost demand and support exports.Meanwhile, the GST on readymade garments that cost up to 2,500 Rupees per piece has also been reduced to 5% making fashion affordable and boosting demand. Talking to the Media, a textile trader, Sushil Garodia, has welcomed the move and said that this step will boost the textile sector as well as the nation’s economy.
The tax cut will make Indian garments affordable for middle-class and lower-income households. This will further revive demand, enhance export competitiveness in global markets and support India’s ambition to become a global textile hub.
