NEW DELHI: The Government has decided to increase the basic customs duty on polyester fabric to 20 per cent, from 10 per cent, with effect from 27th October.
In the Goods and Services Tax regime, countervailing duty has been replaced with Integrated GST and Special Additional Duty (SAD) has been scrapped. Polyester fabric attracted 10 per cent basic customs duty, 12.5 per cent countervailing duty and four per cent SAD in the pre-GST regime.
After scrapping of the SAD and levy of five per cent GST on the fabric, the imported variety attracted 10 per cent basic customs duty and five per cent IGST. This was a significant drop and the domestic manufacturing industry had petitioned in alarm, to stop cheaper import, especially from China. The industry had represented to the Government and the GST Council to increase the basic Customs Duty.
We feel proud in offering export-import data information services to our respected clients.