The GST Council recently announced tax reduction on manmade yarns to 12%. Various other relief measures such as GST refund, setting up of e-Wallets were also announced.
Indian trade associations like Apparel Export Promotion Council (AEPC), Southern India Mills Association (SIMA), Cotton Textiles Export Promotion Council (Texprocil) and Confederation of Indian Textile Industry (CITI) have welcomed the announcements made.
Texprocil states that the speedy GST refund would now resolve the liquidity issues faced by the exporters.
SIMA also hailed the Government’s decision to reduce GST on man-made fibres and yarns from 18 per cent to 12 per cent.
P Nataraj, Chairman of the association hopes that the GST Council would further consider the refund of the accumulated input tax credit at fabric stage, especially the processed fabrics.
Trade body of knitwear hub of India, Tirupur Exporters Association (TEA) welcomed the relief announced for the export sector by the GST Council.
TEA Chief Raja M Shanmugham also met the Duty Drawback Committee on October 9. He urged to increase the drawback rates to enhance the competitiveness and to protect the SME exporters.
However, textile traders in Surat, Gujarat are not content as no relaxation was announced for them.
According to Manoj Agrawal, President of Federation of Surat Textile Traders Association (FOSTTA), “GST Council did not consider even a single demand made from our side.”
Bharat Tex Special Report 2026 
