In a statement, SIMA chairman P Nataraj said that the man-made fibres (MMF) and yarns were slotted under 18 per cent GST rate while the fabrics under five per cent with a condition that no refund of Input Tax Credit would be allowedat fabric stage. Coimbatore: Southern India Mills Association (SIMA) on Saturday said that the reduced rate of GST for MMF yarn from 18 to 12 per cent would benefit the spinning and power loom sector.end-ofTags: gst, gst council, gst on yarn, gst on filament, gst on mmf yarnLocation: India, Tamil Nadu, CoimbatoreRelated StoriesGST Council will resolve other issues too: MoS FinanceGroup of ministers to review GST on restaurantsFind out what got cheaper after GST Council tweaked rates of items.
The industry has been pleading the GST Council to reduce MMF yarn rate to 12 per cent to avoid cost escalation of yarn and facilitate the power loom sector to remain competitive, Nataraj said.This was creating a huge inverted duty problem for the synthetic sector and inflating the cost of synthetic products that already had serious threat by China Laminated Nonwoven Machine-made Bags suppliers cheaper imports.GST Council on Friday including textile reduced tax rate on as many as 27 items ahead of Diwali.Industry says higher GST rate was creating a huge inverted duty problem for synthetic sector.