Several bigwigs in India’s textile industry have suggested that the government must levy GST on ex-factory price and not the maximum retail price (MRP), as proposed. They maintained that if GST is levied on the MRP, then it will badly affect the entire industry.
In this regard, Shanti L Shah, Chairman and Managing Director of Hiralal Gulabchand Pvt Ltd, a city-based garments manufacturer, said “The MRP is just an indicative price, which cannot be determined for any tax collection. Levying GST on MRP of garments would have multiple ill effects on the entire textile sector. Not only will the front-line textile sector get affected, the entire value chains of the textiles industry would be badly hit.”
The textile industry offers heavy discounts on MRP of branded garments in their organised retail formats to attract business. If the tax is levied on the retail price, then there
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