(source : ANI) ( Photo Credit : ani)
Big news for India’s textile industry! The GST Council made a game-changing decision at its 56th meeting on September 3, 2025, in Mumbai. They simplified the GST rates by switching to just two slabs: 5% and 18%. This means goodbye to the old 12% and 28% rates, and the changes kick in from September 22, 2025. It’s a big step toward easier taxes and boosting local businesses.
One of the highlights? The GST rate on manmade fibres drops from 18% to 5%, and manmade yarns now go from 12% to 5%. This puts the entire value chain—fibre, yarn, and fabrics—under the 5% slab. Experts say it fixes the long-standing issue of inverted duty structures, which will cut costs, ramp up domestic production, and make Indian textiles more competitive on the global stage.
Shri Shaleen Toshniwal, Chairman of MATEXIL (the Manmade Fibre Textiles & Technical Textiles Export Promotion Council), is thrilled about this move. "This is a major relief for exporters," he said. The sector has been hit hard by the US slapping 50% tariffs on Indian products, making tough times even tougher. With lower GST rates, manmade fibre textiles and technical textiles can now breathe easier and focus on growth.
Toshniwal didn’t hold back on the thanks. He praised Prime Minister Narendra Modi for his visionary leadership and steady support for the MMF sector. He also shouted out Union Finance Minister Nirmala Sitharaman, Union Minister of Textiles Giriraj Singh, and Textiles Secretary Neelam Shami Rao for pushing these historic reforms.
Overall, these GST rate cuts, combined with simpler compliance rules and business-friendly changes, will supercharge the manmade fibre textiles industry. It’s all part of the push toward Viksit Bharat—a developed India by 2047. If you’re in textiles or just curious about GST reforms in India, this could mean big opportunities ahead!
(Note: This is based on a press release from PNN. Views expressed are those of the source.)
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