Goods and services tax repair: GST 2.0 Bonanza for the weaving sectors, fertilizers

Textile and fertilizer industries are preparing to gain greatly from the upcoming GST 2.0 rationalization. The Committee for Committee suggested sharp cuts in the critical groups, which aims to solve the inverted fees structures and the costs of eliminating the final users.

In the textile sector, there are categories such as woven fabrics and fibers made of human and wool, along with clothes, socks, and some mixed textiles, are under consideration of the rate of goods and services tax by 5 %, to the bottom of the current higher arches.

Industry representatives have long argued that higher rates on inputs compared to the capital working for final clothes and hurt the competitiveness. Reducing commodity and services tax will not only provide relief for weavors, Powerlooms, and clothing makers, but also makes Indian exports more attractive in global markets.

On the fertilizer front, the council weighs a reduction from 12 % to 5 % on the main inputs including urea, Diaonium phosphate (DAP), Muriat of Potash (MP), individual super phosphate (SSP), and complex fertilizers. Reducing commodity and services tax on the main farm inputs will lead to low production costs, reduce support expenses, and make fertilizers more expensive for farmers. It also addresses the long -term issue of inverted duties, as taxes are imposed on raw materials from the final product.

The final decision will be taken by the Commodity and Services Tax Council at its meeting on September 3 and 4 in New Delhi.