Textile industry in TN hopes GST Council will reduce rate to 12%

Says 18% weaving unit will incur additional cost of over Rs 2 lakh per annum

Textile industry is hoping that the GST Council, which is expected to meet on Sunday would consider reducing GST rate on man made fibre, filaments and yarn to 12 per cent from the proposed 18%. The state association said independent weaving units may have to incur additional cost of over Rs 2 lakhs per annum.

The Council also has decided not to allow refund of accumulation of input tax credit at fabric stage that attracts only 5 per cent GST rate.

M Senthilkumar, chairman, Southern India Mills' Association (SIMA) hopes GST Council tomorrow would also include garments, made-ups and other sewn products