The excise duty rates on yarns fixed at 8%, which was not there earlier. Excise duty rates on ready to wear garments at 12%.
Excise duty exemption on handloom fabrics to continue and automatic shuttleless looms provided exemption from excise duty.
The customs duty on automatic shuttle less machinery reduced from 25% to 10%.
|
|
Reduction of excise duty on polyester filament yarn from 32% to 24%.
Excise duty on all knitted cotton fabrics and garments reduced from 12% to 8%.
Basic customs duty on paraxylene reduced from 10% to 5%.
Excise duty on garments reduced from 12% to 10%.
|
|
Cenvat duty on handloom and powerlooms withdrawn
Instead a new tax regime for the textile sector introduced
Mandatory Cenvat chain stands abolished.
No mandatory excise duty on pure cotton, wool and silk, be it fibre, yarn, fabric or garment.
Blended textiles and pure non-cotton items like polyester, viscose, acrylic and nylon to have a different tax regime.
Mandatory excise duty on man-made staple fiber at 16% imposed.
2% education cess on all taxes
|