The Southern Gujarat Chamber of Commerce and Industry (SGCCI), along with man-made fabric (MMF) associations from across India, has urged the Central Board of Indirect Taxes and Customs (CBIC) to slash GST on key raw materials from 18% to 5%.
A delegation led by SGCCI Vice-President Ashok Jirawala and former President Ashish Gujarati met CBIC Chairman Sanjay Agarwal this week to press for relief. The industry body said the steep tax rate on inputs such as paraxylene, caprolactam, mono ethylene glycol (MEG), purified terephthalic acid (PTA), dissolving grade wood pulp, nylon and polyester chips was proving unsustainable and discouraging fresh investments.
The delegation also sought a reduction in GST on garments priced above ₹2,500 from 18% to 5%, arguing that the higher slab pushes up retail costs for consumers. Representatives described the meeting as constructive, adding that the CBIC chief was “carefully considering” the sector’s concerns.
The appeal comes after an online industry-wide discussion on September 9, where MMF stakeholders flagged issues such as the inverted duty structure and delays in input tax credit (ITC) refunds, which have been straining working capital and competitiveness.
News Courtesy: Textileinsights