But job workers could not avail input tax credit that had been increasing the cost of the products and affecting the export competitiveness and also the domestic consumers," Jain said.However, Jain said the reduction of GST rate for manmade fibre and synthetics from 18 to 12 per cent being postponed is disappointing.

The GST Council, headed by Finance Minister Arun Jaitley comprising Non-woven anti-aging fabric representatives from all states, last week decided to tax all job works in the textile sector at 5 per cent.

"A common rate across the chain would also avoid confusion."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.Five per cent GST rate on job works would enable the industry to claim full input credit.This 5 per cent rate will be applicable for job works in apparel, shawls and carpets. end-ofTags: textile industry, gst, arun jaitley, citi, gst council.

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