Views on GST by Mr. Rajkumar Agarwal, MD, SVG Fashions

While the debate about fibre neutrality and how due to higher rate on man made fibre issue of unutilsed credit with fabric manufacturers needs to be addressed is hogging the limelight a potentially devastating ramification on fabric imports front seems to be going unnoticed.

 

 

At present man made fabric imports attract 10% import duty,12.5% cvd and 5%  SAD.


After   GST it will be 10%import duty and 5% GST .thus difference between domestic and imports will be only 10%.exporters from  china   get a drawback of 18%.whereas Indian manufacturers will pay 18%on yarn  out of which about 10%will remain unutilsed. So against a disadvantage of 18+10=28% Indian fabric manufacturers have a protection of only 10%!!!

 

How can Indian knitting and weaving industry survive with a 18%disadvantage??

 

 

This scenario aggravates further when we account for rampant undervaluation of imports.

Read 65 times
No result...