The global textile and apparel industry is dominated by manmade fibre, but India’s textile and apparel sector is still dominated by cotton fibre due to the uneven tax structure on manmade fibre and its value chain. The Indian industry has repeatedly highlighted the inverted duty structure in the polyester value chain.

Ahead of the crucial GST Council meeting, the North India Textile Mills Association (NITMA) has demanded a uniform 5 per cent GST on polyester fibre, yarn, fabric, and garments. Following Prime Minister Narendra Modi’s announcement of rationalisation and rate cuts, the Council’s meeting scheduled for September 3–4, 2025, has become especially significant. NITMA raised the demand before Indian Finance Minister Nirmala Sitharaman, who chairs the Council.

North India Textile Mills Association (NITMA) has urged the GST Council to impose a uniform 5 per cent GST on polyester fibre, yarn, fabric, and garments to address the inverted duty structure.
Currently, polyester fibre attracts 18 per cent, yarn 12 per cent, and fabrics/garments 5 per cent GST.
NITMA warned that the imbalance threatens spinning viability, risking shutdowns and job losses.

Sidharth Khanna, president of NITMA, said in a letter: “Unlike the cotton value chain—which benefits from a uniform 5 per cent GST across all stages—the MMF segment continues to suffer from disparate tax rates that distort input-output parity and undermine domestic manufacturing viability.” He pointed out that polyester staple fibre (virgin and recycled) is taxed at 18 per cent, polyester staple yarn attracts 12 per cent GST, while manmade fabrics and garments priced up to ₹1,000 are taxed at 5 per cent GST.

Khanna added that taxing yarn at 5 per cent while fibre remains at 18 per cent creates a distortion that renders spinning operations financially unsustainable. If left uncorrected, this imbalance could trigger widespread unit shutdowns and large-scale job losses across the country.

“This is a defining moment for India’s textile sector. Correcting the inverted duty structure will not only neutralise the impact of US tariffs but also unlock growth, investment, and resilience across the MMF value chain—turning challenge into opportunity. There should be a rationalised GST rate of 5 per cent across all stages of the polyester value chain,” he emphasised.

Fibre2Fashion News Desk (KUL)

Derek Rose, founder and chairman of the menswear company of the same name, died in late August. He’d taken the helm of the family business from his father in the 1950s and guided it as it grew and went international.

The company said he was an early champion of British manufacturing and craftsmanship, and his dedication helped the brand win the Queen’s Award for Export on two separate occasions.  

Its success was recognised as in 1966 he was elected chair of the British Menswear Guild and also represented British fashion at delegations around the world.

The company said he “loved the clothing trade—not just the business itself, but the people and the products.  He delighted in working with mills, manufacturers, agents and retailers to produce the garments that defined the brand. His global vision and insistence on quality led to a loyal clientele in more than 50 countries, yet he remained most proud of the relationships he built with our suppliers and customers”.

It added that the “Rose family and the Derek Rose team are committed to honouring Derek’s legacy.  We will continue to uphold the values he lived by — quality without compromise, respect for craft, and a genuine care for the people who make and wear our garments”.