Here is a positive news for textile and apparel industry, The GST Council Meeting recommends reduction in tax rates from 12 per cent to 5 per cent on imitation zari thread.
An official statement issued by the Government said that it has been decided to reduce GST on imitation zari thread or yarn known by any name in trade parlance from 12 per cent to 5 per cent and to regularise payment of GST related to this matter during the past period on “as is basis”.
It was decided in the 50th meeting of the Goods and Services Tax (GST) Council which was held under the chairpersonship of the Union Finance & Corporate Affairs Minister Nirmala Sitharaman.
The reduction in GST on zari thread is a big relief, especially for the zari thread manufacturers and the clothing companies using this product for embroidery purpose. Many companies in Surat and other apparel manufacturing hubs use zari thread.
It also has been decided to clarify that supply of raw cotton, including kala cotton, by agriculturists to cooperatives is taxable under reverse charge mechanism and to regularise issues relating for the past period on “as is basis”.
Darshana Jardosh, Minister of State for Textiles said in a tweet, that this move will further boost the growth of imitation zari industry not only in Surat but various Textile hubs of the country.
The GST Council Meeting recommends reduction in tax rates from 18 % to 5 % on imitation Zari thread.
I wholeheartedly thank Hon'ble PM Shri @narendramodi ji and FM Smt. @nsitharaman ji for considering my humble request on behalf of imitation Zari business owners of Surat.
This… pic.twitter.com/dmUv2Ki3QX
— Darshana Jardosh (@DarshanaJardosh) July 11, 2023
