"We have apprehensions that Indian market would get flooded with imports from China, Bangladesh and Sri Lanka, which would end up in huge job losses," Jain said. Hence, industry would need some safeguard measures to ensure the Make in India initiative does not wash away in the avalanche of imports (which have post GST become 12 to 16 per cent cheaper).. This 5 per cent rate will be applicable for job works in apparel, shawls and carpets."Earlier the additional duties, namely, CVD & SAD were a protection against imports.In a statement, CITI Vice Chairman Sanjay K Jain described it as a big breather to small job work manufacturers in all segments of textile value chain which will allow the free flow of business across the value chain.

However, Jain said the reduction of GST rate for manmade fibre and synthetics from 18 to 12 per cent being postponed is disappointing. All textile job works being manufacturing activities were exempted from service tax in pre-GST regime.The GST Council, headed by Finance Minister Arun Jaitley comprising representatives from all states, last week decided to tax all job works in the textile sector at 5 per cent.He # urged to the government and GST Council to accommodate the textile industry's demand of 12 per cent GST rate on MMF and synthetic yarn or refund of duty under inverted duty incidence at fabric stage as prescribed in GST Act. He claimed that imports are now cheaper than domestic products as the countervailing duty (CVD) and special additional duty (SAD) on imports have become Integrated GST.He said the 5 per cent GST rate on job works would enable the industry to claim full input credit and also avoid any inverted duty and strengthen the global competitiveness of the textile sector apart from benefiting the domestic consumers.

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