With a sound tax system and real time governance coupled with availability of surplus cotton, the year 2017-18 will be a good year for cotton textile industry, Southern India Mills Association (SIMA) said today.
Welcoming the GST, SIMA Chairman M Senthilkumar appreciated the NDA Government especially Textile Minister Smriti Zubin Irani for bringing a seamless tax structure for the entire cotton textile value chain at the lowest slab rate of 5 per cent GST rate.
The industry has been suffering with numerous taxes and different types of cess which were adding to the cost indirectly as they were not duty drawback compatible and therefore adding to the cost thus making the industry uncompetitive especially, the MSMEs and decentralised segments, he said.
With the implementation of GST, all indirect taxes would be merged, he said.
Tamil Nadu accounted for 1/3rd of the textile business of the Nation and the State Governments especially Tamil Nadu should come forward and remove certain taxes and levies that are not subsumed in GST like Market Committee Fee and various other municipal taxes, Senthilkumar said.
He however, expressed disappointment for not considering the genuine demand of reducing 18 per cent GST on Man Made Fibre and blended spun yarn to 12 per cent which will avoid huge inverted duty accumulation at grey fabric stage.
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