The effective duty rates came down as the countervailing duty of 12 per cent was done away with post-GST. Imports started increasing after the implementation of GST. We suspect that Chinese fabric is making a backdoor entry through Bangladesh as garments.Value of knitwear exports rose 107 per cent and woven garment exports by 161 ssper cent. The industry had expected that the imports will come down by at least $1 billion this year due to the increased import duties. However, Bangladesh imports have now become a growing threat. Further, Bangladesh can get cheaper fabric from China."Cheaper imports are a threat to the existence of MSMEs, which is the backbone of India’s textile industry," said Jain."Under the free trade agreement with us, imports from Bangladesh are not subject to any duty. As fabric accounts for 75 per cent of the cost of apparel, cheaper fabric too adds to the savings. Industry suspects that Chinese products are making a backdoor entry into the country through Bangladesh. We have asked the government to implement the rule of origin provision for imports from Bangladesh," said Sanjay Jain, chairman of Confederation of Indian Textile Industry.Bangladesh expects the imports to rise in the coming months as well.Chennai: After the government increased duties on textile products to check cheaper imports from China, apparel imports from Bangladesh has more than doubled.Despite a spate of labour unrest in Bangladesh, apparel exports from that country to India grew 143 per cent between July and December to $270 million from $166 million in the same month last year, as per the data from Bangladesh Export Promotion Bureau. In FY18, India’s textile imports jumped 16 per cent to a record $7 billion and of this around $3 billion came from China.. Proximity is an added advantage when it comes to shipping products from Bangladesh to India.Apparels from Bangladesh are up to 30 per cent cheaper than Indian products as the labour cost is significantly lower there.The government had doubled the duties to 20 per cent for over 300 textile products, ranging from fibre to apparels, in August, mainly to check rising China Pu Waterproof Raincoat Fabric Manufacturer imports of cheaper products from China

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Even with 12 per China transparent PU raincoat fabric Factory cent GST rate on yarns, the additional cost would be Rs 1. He hoped that the Council would also include garments, made-ups and other sewn products related to job work under five per cent GST rate of service tax.Meanwhile, some 400 members operating individual mills, under the banner of Indian Texpreneurs Federation (ITF), in a letter to the Centre, said MMF-based yarns were brought under 18 per cent, while MMF fabric brought under five per cent.The differential rates and non-refund of accumulated input tax credit would not only affect the industry, but also lead to wrong declaration and corruption, he said.The Government could have classified the entire textile value chain under five per cent to avoid such problems or refund the accumulated input tax credit at every stage so that the cost is not increased, level playing field is created and ensure proper compliance.3 lakh per loom per year, thus creating an unhealthy competition between composite and independent weaving units, he said.

ITF secretary Prabhu Dhamodharan in a statement urged the Council to fix MMF and blended yarns under 12 per cent rate.Coimbatore: The Textile industry in the region today expressed the hope that the June 18 GST council meeting would consider reducing the GST rate on Man Made Fibres, filaments and yarns from 18 per cent to 12 per cent.To buttress his point, he said that an independent weaving unit with around 50 looms and producing 100 per cent viscose fabric would incur an additional cost of over Rs two lakh per annum with 18 per cent GST rate on yarn when compared to a composite unit.There would be huge accumulation of excess credit with 18 per cent GST rate on yarn and only five per cent GST rate and non-refund of accumulated input tax credit at fabric stage, Southern India Mills Association (SIMA) Chairman, M Senthilkumar said in a statement here.This would significantly increase the fabric cost and seriously affect the independent spinning and weaving sector, including powerlooms, he said.

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