Key Points

According to the release, the significant move aimed to strengthen the country's GDP growth trajectory but also reinforce our industry's commitment to stand shoulder-to-shoulder with the Government in its reform initiatives.

The decision to fast-track export refunds within 7 days, extend provisional refunds under the inverted duty structure, and allow GST refunds below ₹1000 will bring timely relief to exporters, ease liquidity constraints, and further streamline supply chains.

The release further stated, "As rightly emphasised by the Prime Minister of India in his Independence Day address, these reforms will definitely make a way in improving the living standards of all Indian citizens. We convey our special gratitude to the Prime Minister for translating his words from the Red Fort into action for the benefit of every Indian."

Industry leaders have expressed their gratitude to the Prime Minister and his cabinet, particularly recognising the efforts of Finance Minister Nirmala Sitharaman, Commerce and Industry Minister Piyush Goel, and Textiles Minister Giriraj Singh.

"We also extend our deep appreciation to the visionary leadership of the Government of India - in particular, the Prime Minister Narendra Modi ji, Finance Minister Nirmala Sitharaman, Hon'ble Minister of Commerce & Industry Piyush Goel Ji and Minister of Textiles Giriraj Singh ji - for their continued support to India's exporters and the textile-apparel sector," they stated in the release.

They emphasised that these progressive reforms are set to empower Indian exporters and significantly advance the national vision of Make in India, paving the way for the textile and apparel sector to realise its full potential.

The 56th GST council meeting decided to rationalise GST rates to two slabs of 5 per cent and 18 per cent by merging the 12 per cent and 28 per cent rates.

5% slab consists of essential goods and services, including food and kitchen item like butter, ghee, cheese, dairy spreads, pre-packaged namkeens, bhujia, mixtures, and utensils; agricultural equipment like drip irrigation systems, sprinklers, bio-pesticides, micronutrients, soil preparation machines, harvesting tools, tractors, and tractor tires; handicrafts and small industries like sewing machines and their parts and health and wellness like medical equipment and diagnostic kits.

While the 18% slab consists of a standard rate for most goods and services, including automobiles such as small cars and motorcycles (up to 350cc), consumer goods like electronic items, household goods, and some professional services, a uniform 18% rate applies to all auto parts.

Additionally, there is also a 40% slab for luxury and sin goods, including tobacco and pan Masala, products like cigarettes, bidis, and aerated sugary beverages and on luxury vehicles, high-end motorcycles above 350cc, yachts, and helicopters.

Moreover, some essential services and educational items are fully exempted from GST, including individual health, family floater and life insurance, no GST on health and life insurance premiums and education and healthcare, like certain services related to education and healthcare are GST-exempt.

- ANI