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