New Delhi, 18 September (IANS). Representation of Goods and Services Tax under GST 2.0 is an important improvement aimed at removing structural discrepancies, reducing costs and promoting demand in textile and logistics industries, which are important for domestic development, employment and export competition. This statement was made by the government on Thursday.
The government further said that by uniformly the tax rates in the entire value chain, GST reforms ensure affordability for consumers, maintain employment in labor-dominated areas and increase India’s ability to compete globally. In the textile sector, it will revive retail demand by reducing the rationalization discrepancies, by improving the affordableness of costumes and strengthening the entire value chain, from fiber to garment, by promoting export competition.
The decrease in GST will make the apparel more economical for middle and low -income families, which will increase domestic demand and will have significant impact in small towns and rural areas.
The government has now reduced GST to 5 percent on readymade costumes up to Rs 2,500.
According to the statement, the sein -made duty structure has been removed from 12 percent and 18 percent to 5 percent on man -made fibers and threads, and small and medium enterprises have been strengthened, while decreasing GST from 12 percent to 5 percent on carpets and other textile floor coverings will increase global competitiveness.
Similarly, reduced GST on commercial freight vehicles from 28 percent to 18 percent will reduce the cost and boost exports.
The comprehensive effect of low logistics cost helps reduce overall value pressure and reduce inflation. In addition, low logistics cost makes Indian textiles more competitive abroad.
The rationalization of GST in textile and logistics sectors is a decisive step towards strengthening India’s manufacturing base, improving affordability and promoting exports. By reducing structural anomalies and cost pressure, these improvements are equally benefited by consumers, small businesses and exporters.
-IANS
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