Global Textiles & Apparels - Daily E-Paper (26 July 2018) Global Textiles & Apparels E-PAPER - (26 July 2018

Daily E-Paper MAHENG/2007/20880 Vol. 01 No. 98 Mumbai, Thursday , 26 July 2018 TEXPROCIL Welcomes GST Council’s Demanding Relaxation of Cabotage decision to refund accumulated Input Rule for Movement of Cotton Tax Credit on fabrics N e w D e l h i : T h e transportation at competitive Mumbai: Shri Ujwal Lahoti , Chairman of The Cotton Textiles Export Promotion Council (TEXPROCIL ) said “the decisions taken by the GST Council are in the right direction which will promote growth of the textiles sector ”. A very significant decision taken by the GST Council is to provide refund of accumulated input tax credit on account of the inverted duty structure to the fabrics manufacturers. “This facility will certainly lead to reduction in the prices of fabrics which in turn will make Made ups and Garments competitive in the export markets” , said Shri Lahoti. The Chairman , TEXPROCIL thanked SmtSmritiZubinIrani , Hon’ble Union Textile Minister and ShriPiyushGoyal , Hon’ble Union Minister for Railways, Coal, Finance & Corporate Affairs for this very important decision which will go a long way in the growth and development of the textiles sector and will make India a global trading hub for fabrics . The GST Council has reduced the GST rates on certain textiles items like Chenille fabrics , Handmade lace, Hand-woven tapestries, Hand-made braids and ornamental trimming in the piece, Handmade carpets and other handmade textile floor coverings etc from 12% to 5% . According to Shri Lahoti , the reduction in the GST rates will give a boost to the SME sector as these products are mainly manufactured in this sector. The GST Council also simplified the tax filing for 93 % of the assesses by raising the annual turnover threshold under which businesses can file quarterly returns from Rs 1.5 crores to 5 crores . Certain decisions have been taken which will lead to procedural simplifications . Another significant change was the deferment of the reverse charge mechanism till September 2019. Shri Ujwal Lahoti complimented the GST Council for the overall direction to lower rates and ensureease of compliance. However, there are some areas , pointed out ShriLahoti, which need to be addressed such as the refund of Input Tax Credits related to Capital Goods on exports, payment of IGST on exports in the case of domestic procurements under deemed exports , refund of transitional credits on exports etc. The Chairman , TEXPROCIL said if these issues are also addressed , most of the problems faced by the textiles sector will get resolved. ITF Creating Awareness Mumbai: Indian Texpreneurs Federation (ITF), Coimbatore, an organization of like-minded textile entrepreneurs with a combined annual turnover of over Rs.40,000 Cr., have come forward for the same. As India is expected to be the largest producer of cotton in 2018-19, with the crop projected at 28.5 million bales, this issue becomes more relevant. ITF said that their organization is creating videos and organizing educational tours regarding the effects of contamination and its impact in the further process. Some ginners have been selected who are closely working with them to introduce best practice in all possible areas. I T F ’s c o t t o n t e a m i s actively working with more than 60 top ginners of Maharashtra, Telangana, and Karnataka. ITF cotton team has purchased 1.85 lakh bales and so far in cotton year of 17-18 so far purchase is of 3.8 lakh bales which is expected to be 5 lakh bales in next cotton season. Government of India has relaxed Cabotage rule for movement of cotton from Gujarat to Tamil Nadu. The Ministry of Textiles took up the matter and facilitated interaction between textile industry and the shipping industry for ensuring hassle free movement of cotton bales at competitive prices. It also organised discussions between the textile industry and the shipping industry on the availability of ships and containers for cotton rates. Ministry of Shipping granted relaxation in May 2018, under Merchant Shipping Act to permit the coastal movement of cotton on foreign flag vessels chartered by Indian individuals or the companies carrying EXIM containers and empty containers. The textile industry through South India Mills Association (SIMA), Coimbatore, had represented for the relaxation of Cabotage rules for movement of cotton from Gujarat to Tamil Nadu. Pages 06 INSIDE NEWS Indian Cotton Tex- tile Sector Update By: Seshadri Ramkumar, Texas Tech University, USA Bengaluru: Indian cotton textile sector is at an important stage, given the trade situation between the two other leading cotton producing and trading countries. Page 04