GST Rate Structure Across India's Textile Value Chain

The Indian textile industry is demanding a uniform 5% GST across the value chain to support the $100 billion export and $250 billion domestic sales targets by 2030.

Currently, cotton textiles mostly fall under 5%, except garments over ₹1,000 which attract 12%.

In contrast, MMF inputs like PTA and MEG are taxed at 18%, yarn at 12%, and fabric/garments at 5% (12% if priced above ₹1,000).

Industry bodies urge for a fiber-neutral GST of 5%, suggesting only products above ₹2,000 be taxed at 12%.

They believe this will boost MMF growth, attract investment, and create more jobs across the sector.