The Goods and Services Tax (GST) rate for textile machinery has been decided at 18 per cent.

GST for goods have been fixed at nil rate and 5, 12, 18 and 28 per cent; however, rates for textiles and footwear are yet to be decided.

18 per cent GST has been decided for the following textile machinery: Knitting machines; stitch bonding machines and machines for making gimped yarn, tulle, lace, embroidery, trimmings, braid or net and machines for tufting, extruding, drawing, texturing or cutting man-made textile materials. Also machines for preparing textile fibers, spinning, doubling or twisting machines and other machinery for producing textile yarns; textile reeling or winding (including weft-winding) machines and machines for preparing textile yarn.

Another category is machinery for the manufacture or finishing of felt or nonwovens in a piece or in shapes, including machinery for making felt hats and blocks for making hats.

As per the announced GST rate, there is no drastic difference in the existing purchase and sales of machinery. Earlier also, the rate for machinery was 12.5 per cent with 5 per cent VAT which totaled to 17.5 per cent. With 18 per cent GST on machinery, there is neither a loss nor a gain.

Home textile products wholly made of quilted textile materials will attract 12 per cent tax under the new tax regime