Custom Duty: The Finance Ministry on Wednesday announced exemption of customs duty on cotton imports till September 30. This will benefit the textile industry as well as the consumers. At present, a Basic Customs Duty (BCD) of five per cent and an Agricultural Infrastructure Development Cess (AIDC) of five per cent is levied on cotton imports. The industry was demanding exemption from duty to bring down the domestic prices.
Notification will be effective from 14th April i.e. today
The Central Board of Indirect and Customs (CBIC) has notified exemption from customs duty and Agriculture Infrastructure Development Cess for cotton imports. “The notification will come into effect from April 14, 2022 and will remain in force till September 30, 2022,” the CBIC said.
Entire textile sector will benefit
The entire textile sector will benefit from this exemption. These include yarn, apparel, etc. Along with this, consumers will also get relief. Textile exports will also benefit. Let us tell you that the industry was demanding this exemption for a long time and due to its implementation, their demand has been fulfilled.
There was a possibility of increasing the GST
On the occasion of the new year, the GST Council had decided not to increase the GST on clothing. Apart from this, recently the government has changed the GST on footwear. Its effect is being seen in the form of changes in the prices of retail footwear.