MMF industry seeks GST cut on raw materials
The manmade fiber (MMF) industry is pushing for a GST cut on its main raw materials—from 18% down to 5%—to match the tax rate on finished textile products.
Right now, essentials like PTA, MEG, and PET scrap are taxed higher than the final goods, which is making it tough for MMF businesses to stay competitive.
Polyester Textile Apparel Industry Association weighs in
This tax gap is tying up ₹2,000-₹3,000 crore in working capital because of slow GST refunds.
The article notes that MSMEs in the sector will face blockage of funds due to this setup, as highlighted by B.P. Sultania from the All India Recycled Fibre and Yarn Manufacturers Association.
R.K. Vij from the Polyester Textile Apparel Industry Association adds that since MMF textiles use most of these raw materials, lowering GST would really help ease financial stress across the sector.