Government notifies 12 percent GST rate on MMF, Yarn and Fabrics from 1st January

New Delhi: The Union Government has notified uniform goods and services tax rate at 12 percent on Man-Made Fibre (MMF), MMF yarn, MMF fabrics, and apparel. The changed rates will come into effect from 1st January of next year. This will help the MMF segment grow and emerge as a big job provider in the country.

The textiles and apparel industry was having long-pending demand for removal of inverted tax structure on MMF value chain. The GST



on MMF, MMF yarn and MMF fabrics were 18 percent, 12 per cent and 5 percent respectively. 

Textiles Ministry has said, differential rates for garments create problems in compliance with tax regime. It said the uniform rate of 12 percent for entire value chain of MMF textiles sector will benefit and save a lot of working capital. It will reduce the compliance burden of the industry players.