South India Garment Association (SIGA) has urged Union Finance Minister Arun Jaitley for a uniform rate of tax by levying same rate on yarn and fibre, finished and processed fabrics, and readymade garments. The association has submitted a memorandum on the same to the Finance Minister.
Terming GST one of the most complex and sensitive tax policies with many complications, the association has also urged to end discrimination between branded and unbranded garments under the new tax regime. By just attaching a label garment becomes branded and falls under purview of excise duty is affecting the industry adversely, it added.
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GST Council is yet to decide the tax regime for the textiles industry. The rate announcement has been deferred till June 3 as the Council found complexities within the entire textiles value chain. In addition, postponing final decision is also due to the industry’s anticipation of a fibre neutral taxation across the chain. GST will be applicable from 1st July, 2017.
