GST council meeting held in New Delhi and the council decided for reduction of GST for job work in relation to wearing apparels from 18 per cent to 5 per cent. While giving reaction to the GST Council decision, Raja M. Shanmugham, President said he thanked the GST Council for considering the requisition of Garment Associations, particularly from Tirupur cluster and noted that the decision is a big relief to the micro and small job working units in Tirupur cluster.

Raja M Shanmugham said 5 per cent GST slab will help for the seamless credit flow and fulfill the objective of GST. Shanmugham further noted that unfortunately, the council has not considered for reduction of GST rate for man-made fibre yarn from 18 per cent to 12 per cent as the higher GST will not encourage for usage of MMF yarn for manufacturing garments and also for increasing exports. He hope the GST council may consider the requisition in the next meeting.