Coimbatore industries welcome GST rate revision

Industries in various manufacturing segments in Coimbatore district have welcomed the revision of GST rates.

The Indian Chamber of Commerce and Industry, Coimbatore, president Rajesh Lund said the two-tax slab system of 5% and 18%, effective from September 22, is aimed at reducing complexity and promoting ease of compliance. The reduction of rates for paper and leather good and agri products is expected to boost growth and consumption and enhance India’s position as a global agri export hub, he said.

The Laghu Udyog Bharati (LUB) Tamil Nadu said the simplified GST structure will enhance transparency, reduce compliance burden, and foster a business-friendly environment. This will lead to increased competitiveness of Indian MSMEs both, domestically and globally. It will also improve cash flows and boost competitiveness of the MSMEs, it said.

According to M. Raveendran, president of the Coimbatore Compressor Industry Association, while reduction of the rates is a welcome move, the input tax credit system should be simplified, the duty for job work should be reduced to 5 %, and the penalty for minor mistakes in the documentation should be reduced.

The AEPC vice-chairman, A. Sakthivel, said the GST reforms announced by the government mark a big step in making India a developed economy. The decision to fast-track export refunds within seven 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, he said.

The South India Hosiery Manufacturers Association said the revision of GST rates for textile industry will increase the funds availability to the garment industry.

According to Openend Spinning Mills Association president G. Arulmozhi, lowering of GST to 5 % for MMF sector will increase consumption of polyester and viscose fibre by the textile mills.

Prabhu Dhamodharan, convenor of the Indian Texpreneurs Federation, said lower GST rates, removal of duty inversion, and simplified compliance for the textile sector will boost consumption, improve ease of doing business, and strengthen industry competitiveness and global edge. “For the MMF textile sector, this reform is especially significant. The sector has the potential to be the growth driver of the Indian textile industry. In developed markets, India’s share in cotton apparel stands at 10%–12%, while in MMF apparel it is only 2%–3%, highlighting the significant headroom for growth,” he said.