CCI nod for addl stake of Valuedrive Technologies by Setu AIF Trust, Konark Trust, and MMPL Trust (See 'Corp Brief') CCI approves stake of Groww Asset Management by State Street Global Advisors (See 'Corp Brief') CCI approves acquisition of equity in Shriram Finance by MUFG Bank (See 'Corp Brief') CCI approves merger of Chess Merger Sub with and into Udemy Inc. (See 'Corp Brief') IBC - Non-inclusion of claim in resolution plan results in its extinguishment, and any claim which is not expressly included in resolution plan, and which is not expressly barred as per such plan, cannot be inferred: SC (See 'Legal Desk') CCI okays subscription of equity of Aditya Birla Renewables by GIP EM Star (See 'Corp Brief') Reddy calls for Accelerated Exploration of Critical Minerals at NMEDT Governing Body Meeting (See 'Corp Brief') National Centre to promote organic and natural farming (See 'Corp Brief') PMLA - Recourse to LOC can be taken by investigating agency in cognizable offences if accused is deliberately evading arrest or not appearing in trial court despite Non-Bailable Warrants: HC (See 'Legal Desk') Bharat 6G Alliance expands six-fold, emerging as key driver of 6G ambitions (See 'Corp Brief') Semicon India Programme boosts domestic Chip Manufacturing and Design Ecosystem (See 'Corp Brief') TRAI undertakes assessment of quality of service by conducting drive test (See 'Corp Brief') A&C - Once strong prima facie case of copyright infringement is established, interim injunction to protect copyright must typically follow: HC (See 'Legal Desk') CSR Conclave: 'Empowering Tribals through CSR' (See 'Corp Brief') CSIR & MEA jointly host Ambassadors from Global South (See 'Corp Brief') Nadda reaffirms India's Commitment to Eliminate TB Ahead of Global Targets (See 'Corp Brief') Ministry of Ayush and DBT announce collaborative Clinical Study on Ayurveda (See 'Corp Brief') IBC - Issues of fraud or existence of debt must be decided by insolvency tribunal, not civil court: HC (See 'Legal Desk') RBI strengthens Framework on Unauthorised Electronic Banking Transactions (See 'Corp Brief') Govt expands DEH Initiative to Boost District-Level Export Competitiveness (See 'Corp Brief') DPIIT signs MoU with leading AC company to strengthen manufacturing ecosystem (See 'Corp Brief') Two-Day Eastern Region Review Meeting of CGCA concludes (See 'Corp Brief') IPR - Minor variations in product that do not alter essential mode of operation of patented invention are considered mere engineering variations: HC (See 'Legal Desk') Paatil calls for 'Jan Bhagidari' to strengthen Water Conservation Efforts (See 'Corp Brief') IICA successfully concludes 4th Batch of Directors' Certification in Corporate Governance (See 'Corp Brief') Ministry of MSME assisting entrepreneurs in setting up of new micro enterprises (See 'Corp Brief') COFEPOSA - Dispute over rent or mesne profits for immovable property leased for commercial purposes is 'commercial dispute': HC (See 'Legal Desk') Amendments to Banking Regulation Act and MSCS Act, 2002 enhance oversight & accountability (See 'Corp Brief') MY Bharat mobilises Youth across 763 Districts for Shaheed Diwas Padyatra (See 'Corp Brief') PMLA - Even property acquired prior to commission of crime can be provisionally attached finding it falling in definition of 'proceeds of crime': SAFEMA (See 'Legal Desk') Ministry of Mines to launch 7th Tranche of Auction of Critical and Strategic Minerals (See 'Corp Brief') Jal Mahotsav 2026 gives momentum to 'Jal Sanchay se Jan Bhagidari' (See 'Corp Brief') Ministry of Mines to organise National DMF Summit 2026 (See 'Corp Brief') PMLA - High Court of Delhi lacked territorial jurisdiction to hear appeal filed against Appellant based in Kolkata; GST registration at Delhi, occasional hearings before Delhi Bench of NCLT do not establish that appellant ordinarily operates in Delhi: HC (See 'Legal Desk') Union Minister chairs 90th Meeting of Standing Committee of National Board for Wildlife (See 'Corp Brief') India achieves 1 billion Tonne Coal Production Milestone Again (See 'Corp Brief') Capital Market - SEBI's regulations are framed to protect rights of stakeholders in securities market, and violation of its regulations being matter of public law, can't be condoned by private resolution of shareholders: SC (See 'Legal Desk') PDUNASS conducts DoPT-Sponsored Training Programme (See 'Corp Brief') Govt introduces Credit Guarantee Scheme for Microfinance Institutions-2.0 (See 'Corp Brief') Supreme Court Clears Path For Single Insolvency Proceedings Against Linked Group Companies (See CORP EINSICHT)

Print

Various measures taken to ease textile sector's issues: Gadkari

Published: Jul 16, 2019

By TIOLCORPLAWS News Service

NEW DELHI, JULY 16, 2019: THE Union Minister for MSMEs, Mr Nitin Gadkari, yesterday in Parliament drew attention to the various measures taken by the Government to resolve the many issues being faced by the textiles sector in India. He stated that the policy of the Government is to reduce tax burden and increase ease of tax compliance of MSME's including Textiles MSMEs.

For furtherance of this objective, the Government has taken various steps in the recent years, which include -

  1. The rate of corporate tax was reduced to 25% for companies with a turnover of upto Rs 250 crores in Financial Year 2016-17 (covering 99 per cent of domestic companies). This limit is further proposed to be increased to Rs 400 crores vide Finance (No.2) Bill, 2019.
  2. The threshold limit for applicability of presumptive taxation of business income was increased from Rs 1 crore to Rs 2 crore.
  3. The threshold for maintaining books of accounts on part of individuals and Hindu undivided family has been increased to income of Rs 2.5 lakh from Rs 1.2 lakh earlier or total turnover of Rs 25 lakh from Rs 10 lakh earlier.
  4. The rebate provided under the Income-tax Act, 1961 has been increased and now any individuals or Hindu undivided family having a total taxable income upto Rs. 5 lakh do not need to pay any Income-tax.
  5. Section 80JJAA of the Act provides for deduction in lieu of employment generation. Considering the seasonal nature of the business of an assessee engaged in manufacturing of apparel, the requirement of 240 days of employment has been relaxed to 150 days.
The Ministry of Textiles has taken up the issues raised by the Textiles Industry/Traders Associations regarding reduction of GST rates on various textile items and actively engaged with the Department of Revenue, Ministry of Finance for getting them resolved. As a result, many important changes have been made, such as -
    1. GST rate on job works for entire textile segment i.e. yarn, fabric garments and made-ups was revised from 18% to 5%.
    2. Initially GST rates for a few Handicraft items have been reduced. Subsequently, GST Council in its 28th Meeting held on 21.7.2018 reduced the GST rate to Zero for two handicrafts items, reduced from 12% to 10% for 15 handicraft items and reduced the GST rates from 12% to 5% on 8 items.
    3. GST rates for Corduroy and velvet fabric has been reduced from 12% to 5%.
    4. GST rates for Manmade Filament (MMF) yarn has been reduced from 18% to 12%.
    5. GST on Common Effluent Treatment Plants services of effluents has been reduced from 18% to 12%.
    6. The import duty on MMF has been enhanced from 10% to 20% to protect domestic market.
    7. Sari has been included in the classification of fabric with 5% GST.
    8. Refund ITC to fabrics was allowed with prospective effect (i.e. 27.7.2018). The inverted duty structure on MMR (i.e. 18% on fibre, 12% on yarn and 5% on fabric without refund of ITC) led to stranding of 2% tax at the fabric stage and rendering the weavers uncompetitive in domestic and international markets).

TIOL CORP SEARCH

TIOL GROUP WEBSITES

taxindiaonline
taxindiainternational
tioltube
TKF
TIOLawards
A TIOL Website. Copyright © 2025 TIOLcorplaws.com All rights reserved.