The Manmade Fibre Textiles and Technical Textiles Export Promotion Council (MATEXIL) has stated that the recent rationalisation of GST rates will significantly aid the industry’s sustainability, especially at a time when the US has imposed a 50 per cent import duty on Indian products.

At its 56th meeting, the GST Council approved a shift to a two-slab structure of 5 per cent and 18 per cent, effective from September 22. As part of this reform, the GST rate on manmade fibres has been 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, noted that the entire value chain of manmade fibre textiles—including fibre, yarn, and fabrics—has now been brought under a uniform 5 per cent GST. This long-awaited correction of the inverted duty structure, he said, will help lower costs, promote domestic value addition, and enhance the sector’s overall competitiveness.

He further remarked that the reduction comes as a much-needed relief for exporters of manmade fibre textiles and technical textiles, who are grappling with the challenges posed by the steep 50 per cent tariffs levied by the US on Indian goods.

“The reduction in GST rates, along with other measures and reforms aimed at simplifying compliance and improving the ease of doing business, will provide strong support for the growth of the manmade fibre textiles sector,” he added.