Man-made fibre and synthetic yarn would have inverted duty structure problem as they would be levied Goods and Services Tax (GST) at 18 per cent, while man-made and synthetic fabric would attract only 5 per cent GST rate. Keeping the rates of key inputs at a higher level will affect the competitiveness of small and medium synthetic textile manufacturers.

Prominent textile and apparel industry bodies, including The Cotton Textiles Export Promotion Council (Texprocil), The Southern India Mills’ Association (SIMA) and the Tiruppur Exporters’ Association (TEA) have welcomed the rates announced for the industry by the Goods and Services Tax (GST) Council. The single tax is to be rolled out pan India from July 1.

The GST Council, chaired by finance minister Arun Jaitley and comprising state counterparts, has finalised the tax rates for textiles and apparel under the Goods and Services Tax (GST) regime that is to be rolled-out pan India from July 1. The Council has made a distinction between various items and textiles and clothing would attract different rates.

Union minister of state for textiles Ajay Tamta has said that the Central government would extend its help to boost the production of silk in Manipur. He added that the Centre would take all possible measures to encourage the young generation for silk rearing, as silk production plays a significant role in generating employment in the state.

The Confederation of All India Traders (CAIT) has urged Union finance minister Arun Jaitley to categorise fabrics of all kinds under the 5 per cent tax slab of the Goods and Services Tax (GST). Being a new entrant to the taxation club and given that cloth is an item of mass consumption, 5 per cent should be the appropriate rate of taxation, added CAIT.

Ikea has acquired land parcel for store in Bengaluru. This will be Ikea’s third store in India after Hyderabad and Mumbai. The Ikea store in Bengaluru is planned to be around 4.5 lakh square feet. The 14 acres site has been acquired from the Bangalore Metro Rail Corporation. The Swedish home furnishing retailer plans to open 25 stores in India by 2025.