GST news and archive

Higher tax on apparel in India puts pressure on domestic and foreign fashion brands

Based on a Reuters report, global fashion brands are concerned about a new tax reform in India that will increase taxes on apparel priced above Rs 2,500 (approximately 29 dollars). The reform, considered the biggest tax overhaul in eight years by Prime Minister Narendra Modi's government, will cut the Goods and Services Tax (GST) to 5 percent on...

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Apparel and footwear stocks rally after GST rate cut

Most apparel and footwear stocks surged on Thursday after the Goods and Services Tax (GST) Council approved a significant tax rate cut. Chaired by Finance Minister Nirmala Sitharaman, the GST Council announced a reduction in the tax on apparel and footwear priced up to Rs 2,500 to 5 percent, down from the previous 12 percent and 18 percent...

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CMAI warns against GST hike on garments, citing industry impact

The Clothing Manufacturers Association of India (CMAI) has issued a stern warning against a proposed government plan to increase the Goods and Services Tax (GST) on garments priced above Rs 2,500 from 12 percent to 18 percent. CMAI argues that this measure would be a "death-knell" for the industry, which is already grappling with weak domestic...

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Delhi Airport’s duty free shops now have to pay GST

Retailers at the Delhi International Airport is not 'free from duties' under the Goods and Services Tax regime. Therefore, international passengers buying goods at airport 'Duty-Free' shops will have to pay GST as per with the Authority for Advance Ruling (AAR). Duty free shops were exempt from the levy of central sales tax (CST) and value added...

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Indian textiles, garment industry facing challenging times

The next year also may turn out to be a challenging time for India's textile and garment industry, as exporters are still bleedingfollowing the impact of GST and exports are probably going to miss the USD 45 billion target for 2017-18. Garment exporters have been repeatedly asking that the duty reimbursement should be retained at the pre-GST...

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FM says no to lowering GST rates for textiles sector

Amid protests in Gujarat, Tirupur et al by textile traders who are demanding a rollback of 5 per cent GST on fabrics, Finance Minister Arun Jaitley has negated the idea that the textiles sector was never taxed in independent India. The entire textiles sector was subjected to central excise duty, he says. GST on fabrics will break the input tax...

Retail

Garment prices may fall by three per cent post GST

While retailers and customers are still getting used to the GST regime experts say maximum retail price on garments is likely to dip by two to three per cent now. The GST has lower levies on various products in the garment value chain and this should impact final prices. Many textile players have adopted the ‘go slow’ method in manufacturing in...

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GST to impact apparel prices, traders protest in Telangana

Some 40,000 textile traders in Telangana are protesting against GST as they feel, with GST tax on textile sector will be at four –levels. Manufacturer to all-India wholesaler, all-India wholesaler to state wholesaler, state wholesaler to retailer and finally retailer to consumer. Each of the three stages, will have to make a provision for GST....

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Ecom players helping sellers tide over GST

Amazon, Flipkart and ShopClues are partnering with taxation experts ahead of the GST roll-out on July 1 to make sellers GST-compliant. E-commerce vendors will have to pay the one percent TCS (tax collected at source) upfront but smaller vendors could be impacted negatively, as it may hold up their working capital against input tax credit....

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Mumbai cloth shops to be shut

Cloth merchants in Mumbai have decided to keep their shops shut for a day on June 16 to oppose the Centre’s move of bringing the textile industry under the Goods and Service Tax. Sixteen associations of cloth merchants from the city and outskirts have formed a Joint Action Committee of Textile Traders Association and decided not to seek GST...

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Bag makers fear tax evasion

The decision to impose a 28 per cent GST on handbags and luggage will increase the price of the products by 10 to 15 per cent. Products like school bags and sports bags also fall under this tax slab. Last month, the GST Council finalised a four-tier structure for taxation of both goods and services at 5, 12, 18 and 28 per cent. Luggage and...

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Etailers rush to clear stocks

Vendors on e-commerce platforms are trying to liquidate stocks before July 1. They fear losses resulting from GST. Many are expected to offer attractive discounts to tempt buyers. They feel clearing the stock would allow them to lower the tax burden, thus bringing down losses. Since they would not get any input credit on stock which is more than...