Garment Industry Welcomes GST

CMAI is organizing “India’s Largest Apparel Trade Show – The 65th National Garment Fair” from 10th July to 12th July 2017 at Bombay Exhibition Centre, NSE Complex, Goregaon (East), Mumbai.
The 65th National Garment Fair is being brought to you by “Bhumiworld Industrial Park” – A Fastest Developing Integrated Industrial Hub in Bhiwandi providing Support to the Garment Industry to help them grow their Manufacturing Activities in Maharashtra.

The Association has Invited Smt. Smriti Irani, Hon’ble Minister of State for Textiles, Govt of India to be the Chief Guest and Inaugurate the Fair and ShriAnant Kumar Singh, IAS, Secretary (Textiles) as Guest of Honour on 10th July 2017 at 10.30 AM.
Mr. Rahul Mehta, President, The Clothing Manufacturers Association of India, stated that this B2B Fair will be spread over Approx. 6 Lakh Square Feet, covering all the Halls at the Bombay Exhibition Centre. There will be 881 Stalls Displaying 1005 Brands by 822 Exhibitors. This will be India’s Largest Ever Garment Fair held so far. Approx. 50,000 Retailers from all over India are expected to Visit this 3 Day B2B Fair.
Over One Lakh Invitation Cards displaying the Participating Brands in Men’s wear, Women’s wear, Kid’s wear and Accessories have been sent by the Association to Retailers, Wholesalers, Agents & Distributors Inviting them to Visit the 3 Day Fair.
The Business Networking Sessions will continue this year as well. There will be Three Sessions comprising of (1) Agents & Distributors, (2) High Street Retailers, (3) National Chain Stores & E-Commerce Companies.

Garment Industry Welcomes GST
Whilst welcoming the Goods & Service Tax (GST), Mr. Rahul Mehta stated that there could be some confusion & uncertainty for initial 2 -3 Months for Manufacturers and Dealers. However, in the long run, it will be Beneficial to the Garment Industry.
CMAI is grateful to the Government for having by and large accepting most of the Recommendations of CMAI, and keeping a majority of the Industry under the 5% GST Slab. Although there is some concern among Fabric Manufacturers for the 5% Duty where as under the earlier dispensation, this will enable Garment manufacturers to claim ITC against embedded Taxes. The Government has also accepted CMAI’s request to Reduce the GST applicable on Job Work from 18% to 5%, but unfortunately
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this has been done only up to the Fabric stage. Job working in Garmenting still attracts 18% GST. THIS WILL BE A MAJOR BLOW TO THE SMALLER MANUFACTURERS, MOST OF WHOM FOLLOW THE JOB WORK BASIS OF MANUFACTURING. CMAI has again requested the Government to Reconsider this obvious anomaly and Reduce GST on Job working at the Garment stage also to 5%.
‘ADHIGAM’ GST Software
CMAI, in association with Tata Consultancy Services (TCS) and Shah Chambers, has Developed ‘ADHIGAM’ Software for Textiles & Garment Manufacturers, Traders & Retailers to prepare them for GST Compliance. This Software automatically converts regular Invoices to GST Compliant invoices, sends Reminders to Vendors or Suppliers who have not paid Tax at any stage in Textile Value Chain. A manufacturer knows which Vendor in the Value Chain has not paid the Tax and hence he can guide the Vendor to pay the Tax.
CMAI’s Apparel Training Centers
CMAI was one of the Lead Implementing Agencies under Component II of the Integrated Skill Development Scheme (ISDS) of the Ministry of Textiles, Govt. of India to impart Training to 35,000 trainees in the 12th Five Year Plan. CMAI Established 85 Apparel Training Centers across India and successfully fulfilled the target. Now, the Govt. has assigned CMAI to additionally Train 3000 Trainees, which is under execution. CMAI is looking forward to continue this work as Lead Agency under the New Policy.
CMAI has acquired 10,000 sq. feet Space in Asmeeta Apparel Park situated on Kalyan –Bhiwandi Road. CMAI plans to set up a State of the Art Training Center with a Capacity to Train 1500 Workers per year.
CMAI Pavillion at TEXTILES INDIA 2017
Mr Mehta also stated that CMAI has been Invited to Showcase the Indian Brands & Retail at Textiles India 2017 which is being organized by the Ministry of Textiles, Govt of India and will be held from 30th June 2017 to 2nd July 2017 at Gandhinagar, Gujarat.
A “CMAI Pavillion” showcasing 15 Leading Indian Brands & Retailers will be Located in Hall 12 at Helipad Exhibition Centre, Gandhinagar, Gujarat.
Textiles India 2017 will be Inaugurated by the Hon’ble Prime Minister ShriNarendraModi on 30th June 2017.

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Market Scenario
Local Garment market was disturbed due to the Demonetization and GST. This turmoil is expected to continue for next 2-3 Months due to GST. However, with the Commencement of GST from 1st July 2017 and due to Good Monsoon forecast, Market conditions are expected to Improve from Diwali.
On the Export front, due to the World Recession and Heavy Completion from China, Bangladesh and Vietnam, India could not fulfill the Export Target for the year 2016 -17. However, there has been a Growth in Export to the tune of 13% in Dollar terms, in the last 5-6 months. This has been mainly due to the favorable Special Apparel Package Announced in July 2016. Now, new Foreign Trade Policy in on anvil and will be Announced on 29th June 2017. Under the new Exim Policy, it is feared that all Exemptions & Incentives like Duty Drawback etc. will come to an end. So CMAI requests the Govt. to continue old provisions along with GST Rates, at least for a Period of 6 Months.

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