Textile Stocks: Stir due to GST proposals after tariff
2025-08-29 12:03:58
Textile Stocks: After tariff, now GST proposals have created a stir, keep an eye on these stocks
Textile Stocks: Today, there is a lot of movement in the shares of the country's textile companies. The reason for this is that a big decision is going to be taken regarding the GST rates. According to the information received by CNBC-TV18 from sources, rates can be fixed on threads and clothes. Earlier, the shares of the textile sector are also being affected by the US tariff. Due to the purchase of oil from Russia, US President Donald Trump has imposed an additional tariff of 25% on India, due to which Indian goods are now subjected to a 50% tariff on entry into the US. Due to the US tariff, many stocks including Gokaldas Exports and Indo Count Industries fell by up to 20% in a month. This is because a large part of the revenue of these companies, about 50-70%, comes from the US market.
How much relief is expected in GST rates?
GST rates on synthetic filament yarn and sewing thread can be reduced from 12% to 5%. Apart from this, there is a proposal to reduce the GST rate on gimped yarn, metallized yarn and rubber thread from 12% to 5%. According to sources, there is a proposal to reduce the GST rate on other products including carpet and gauze from 12% to 5%, while the GST limit for readymade garments with 5% GST is proposed to be increased from ₹ 1,000 to ₹ 2,500. However, there is a proposal to increase the GST rates on readymade garments above ₹ 2,500 from 12% to 18%. However, it needs to be noted that these are only proposals and the final decision will be taken by the GST Council, whose meeting will be held on 3-4 September 2025.
