The Cotton Textiles Export Promotion Council (TEXPROCIL) has stated the decisions taken by the GST Council will promote growth of the textiles sector. Texprocil Chairman Ujwal Lahoti says a very important decision taken by the GST Council is to deliver refund of accumulated input tax credit on account of the upturned duty structure to the fabrics manufacturers.

This will lead to decrease in prices of fabrics which in turn will make Made ups and garments competitive in the export markets. The GST Council has reduced GST rates on few textiles items like chenille fabrics , handmade lace, hand-woven tapestries, hand-made braids and ornamental trimming in the piece, handmade carpets and other handmade textile floor coverings etc, from 12 to 5 per cent.

The GST reduction will give a boost to SME sector as these products are mainly manufactured in this sector.