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FinMin Notifies Uniform 12% GST Rate for Man-made Fibre

The finance ministry has notified uniform 12% GST rate for Man-made fabrics (MMF), yarn, fabrics and apparel, addressing the inverted tax structure in the MMF textile value chain. Currently, tax rate on MMF, MMF yarn and MMF fabrics is 18%, 12% and 5%, respectively. The taxation of inputs at higher rates than finished products created buildup of credits and cascading costs.

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