By Our Bureau

Copyright thehindubusinessline

The Manmade Fibre Textiles and Technical Textiles Export Promotion Council believes the rationalisation of GST rates will go a long way in helping the industry sustain when the US has levied a 50 per cent import duty on India.

The GST Council, at its 56th Meeting rationalised the GST rates by moving to a two-slab structure of 5 per cent and 18 per cent. These revised rates will come into effect from September 22.

As part of this reform, the GST rate on manmade fibres was reduced from 18 per cent to 5 per cent and on manmade yarns from 12 per cent to 5 per cent.

Shaleen Toshniwal, Chairman of MATEXIL said the value chain of manmade fibre textiles—fibre, yarn and fabrics—has now been brought under 5 per cent GST and the long-pending rectification of the inverted duty structure will reduce costs, encourage domestic value addition besides improving the competitiveness of the sector.

He further added that the reduction comes as a major relief for exporters of manmade fibre textiles and technical textiles, which are currently facing turbulent times due to the 50 per cent tariffs imposed by the US on Indian products.

“The reduction in GST rates, along with other measures and reforms to simplify compliance and enhance ease of doing business, will strongly support the growth of the manmade fibre textiles,” he added.

Published on September 15, 2025