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The GST Council, chaired by finance minister Arun Jaitley and comprising state counterparts, has finalised the tax rates for textiles and apparel under the Goods and Services Tax (GST) regime that is to be rolled-out pan India from July 1. The Council has made a distinction between various items and textiles and clothing would attract different rates.

After the end of 15th meeting of GST Council, Jaitley told media persons that readymade apparel priced below Rs 1,000 would attract GST at 5 per cent, while the expensive ones would be taxed at 12 per cent.

In the textiles category, no tax would be levied on silk and jute fibre. Cotton and natural fibre will be taxed at 5 five per cent. Man-made fibre and yarn will attract 18 per cent tax rate. All other fibres and yarn would have a uniform 5 per cent rate.

The Council decided to tax footwear below Rs 500 at 5 per cent while those costing more would be taxed at 18 per cent.

The issue of setting up an anti-profiteering body that would look into complaints was also discussed at the GST Council meeting on Saturday. The body would comprise revenue officers from the Centre as well as the states.

Stating that he was hopeful of the July 1 roll-out, Jaitley said the GST Network (GSTN), the information technology backbone of the new tax regime, had responded satisfactorily to various questions from state finance ministers.

The GST Council would hold its next meeting on June 11 to complete all the remaining processes that are necessary for a smooth rollout of the new tax regime that intends to transform India into a single market. (RKS)

Source : Fiber 2 Fashion

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