In a
statement, Confederation of Indian Textile Industry Chairman J Thulasidharan
said the industry is apprehensive about the made-ups and garment sector as the
job work related to these still comes under 18 percent service tax slab.
Textile
industry on Monday urged the GST Council to lower the service tax on job work
related to made-ups and garment sector, saying the proposed 18 percent tax
would escalate the prices of final goods making them uncompetitive in the
international market.
In a
statement, Confederation of Indian Textile Industry Chairman J Thulasidharan
said the industry is apprehensive about the made-ups and garment sector as the
job work related to these still comes under 18 percent service tax slab.
He requested
the Goods and Services Tax (GST) Council to reconsider this on an urgent basis
and bring it under the 5 per cent slab. The Council yesterday fixed the tax
rate on job workers in textile, diamond processing, leather, jewellery and
printing at 5 percent, as against the normal 18 percent GST rate for services.
Giving
reasons for lowering the tax rates, Finance Minister Arun Jaitley had said the
objective was to maintain equivalence to the existing taxation level.
Thulasidharan welcomed the announcement on revision of GST rates on job work of
textile yarn and fabric manufacturing activity from 18 to 5 percent.
He said the
lower tax will provide relief to the textile industry from the extra burden as
majority of the work of textile manufacturing is with small and medium
enterprises and is carried on through job works especially in the power loom,
knitting, processing and garment manufacturing sectors.