Chennai: The GST rate of five per cent on the textile sector has seen a lot of "positive response" from the industry, a top Central government official said today. Whether cotton, jute or silk, "we said that the textile sector should have a five per cent GST," A Madhukumar Reddy, Joint Secretary, Ministry of Textiles, told reporters here.
The same rate applied to sale of garments with a value of less than Rs. 1,000, he added. "In terms of items of mass consumption, the GST rate has been limited to 5 per cent and becasue of this the entire industry has welcomed it," he said.
Briefing reporters here about Textiles India 2017, an international exhibition scheduled later this month, Reddy said the rate was 18 per cent for Man Made Fibre (MMF) and even in this segment "there has been no increase".
"On the whole, in the broad sense, there has been lot of positive response from the industry," on the GST rate, he added. K Selvaraju, secretary-general, South India Mills Association, also welcomed the GST rate for the textile sector, calling it an "excellent tax structure."
"It would definitely strengthen our industry since we are predominantly cotton-based. Sustainability and competitiveness will sustain," he said.
The net increase on the common man will be "very negligible," he added. He said a "lot of disparities" have been sorted out by the government ahead of the GST rollout. "In my opinion, for the first time we are having an excellent tax structure," he added.
Earlier, briefing about the Textiles India 2017 event, Reddy said it will be held from June 30-July 2 in Gandhi Nagar, Gujarat, with Prime Minister Narendra Modi slated to inaugurate the international exhibition.
The exhibition will showcase India's strength in the entire textile and apparel value chain from fibre to fashion, he said. Various countries inclding China, the US, Bangladesh and Vietnam among others would participate in the event, he said adding, about 2,500 international and 15,000 domestic buyers were likely to attend the three-day expo.