Finance Ministry notifies 12% GST on manmade fibre, yarn, fabrics from Jan 1; corrects duty anomaly

07:00:00 PM, Sunday 21st of November 2021 | in business

The finance ministry has notified uniform 12 per cent GST rate on manmade fibre (MMF), yarn, fabrics and apparel, thereby addressing the inverted tax structure in the MMF textile value chain. Currently, tax rate on MMF, MMF yarn and MMF fabrics is 18 per cent, 12 per cent and 5 per cent, respectively. The taxation of inputs at higher rates than finished products created build up of credits and cascading costs.