MATEXIL welcomes rectification of duty structure for MMF textiles

The GST Council, at its 56th Meeting held on 3rd September 2025, approved the rationalization of GST rates by moving to a two-slab structure of 5% and 18%, abolishing the existing 12% and 28% rates. These revised rates will come into effect from 22nd September 2025. 

As part of this reform, the GST rate on manmade fibres has been reduced from 18% to 5%, and on manmade yarns from 12% to 5%. 

Welcoming this landmark announcement, Shri Shaleen Toshniwal, Chairman of MATEXIL (Manmade Fibre Textiles & Technical Textiles Export Promotion Council), said “the value chain of manmade fibre textiles—fibre, yarn, and fabrics—has now been brought under 5% GST and the long-pending rectification of the inverted duty structure will reduce costs, encourage domestic value addition, and improve the competitiveness of the sector.”

He further added that this reduction comes as a major relief for exporters of manmade fibre textiles and technical textiles, who are currently facing turbulent times due to the 50% tariffs imposed by the US on Indian products. 

Shri Toshniwal expressed his gratitude to the Hon’ble Prime Minister, Shri Narendra Modi, for his visionary leadership and constant support to the MMF sector. He also thanked the Hon’ble Union Finance Minister, Smt. Nirmala Sitharaman, the Hon’ble Union Minister of Textiles, Shri Giriraj Singh, and the Secretary (Textiles), Smt. Neelam Shami Rao, for these historic decisions. 

“The reduction in GST rates, along with other measures and reforms to simplify compliance and enhance ease of doing business, will strongly support the growth of the manmade fibre textiles and technical textiles sector, and contribute significantly towards realizing the vision of Viksit Bharat,” according to the Chairman , MATEXIL . 

Note: The headline, insights, and image of this press release may have been refined by the Fibre2Fashion staff; the rest of the content remains unchanged.

ALCHEMPro News Desk (HU)