GST Council Correcting Inverted Duty Structure On Textiles
GST Council correcting inverted duty structure on textiles will reduce the tax burden on garments: AEPC.
The Apparel Export Promotion Council (AEPC) on Saturday said, “The GST Council’s decision to correct the inverted duty structure on textiles with effect from January 1, 2022, will reduce the tax burden on Manmade Fiber (MMF) fabrics and garments.”
The GST Council in its recent meeting on 17 September agreed to do away with the inverted duty structure on footwear and garments with effect from January 1, 2022.
GST Council correcting inverted duty structure: AEPC Chairman A Sakthivel said, “This decision of the GST Council will bring a huge relief to the industry. The amendment will reduce the tax burden on Man-Made Fiber (MMF) fabrics and fabrics.”
Apart from this, Sakthivel also said that “Inputs in the MMF fabric segment (fiber and yarn) attract GST rates of 18 percent and 12 percent, while the rate of GST on MMF fabric is 5 percent and finished goods apparel at 5 percent,” and 12 percent.
This creates a tax structure where the rate on input is higher than that on output and this increases the effective rate of taxation of MMF fabrics and clothing and violates the principle of fiber neutrality.”
He also stated that “The decision of the GST Council to extend the validity of GST exemption on the transportation of goods by ship and air from India out of India till 30th September 2022 has partly helped in mitigating the impact of the existing exorbitant freight costs.” will help.”
GST council meeting.
On September 17, the 17th meeting of the GST Council was held in Lucknow.
In which the GST Council has decided to extend the deadline for concessional rates on medicines related to Covid-19 in several decisions.
Addressing the media after the conclusion of the 45th meeting of the Council, Union Finance Minister Nirmala Sitharaman said that we have taken some favorable decisions.
Those who default in paying monthly GST will not be able to file GSTR-1 sales returns from January 1.
Companies that have defaulted on making summary returns and monthly Goods and Services Tax (GST) payments from January 1, the new year, will not be allowed to file GSTR-1 sales returns for the subsequent month.
The GST Council in its Lucknow meeting on September 17 has decided to take several measures to streamline compliance, including mandatory Aadhaar authentication for businesses to file refund claims.
