The move confirms multiple CNBC-TV18 newsbreaks on GST rate rationalisation that had been anticipated since Prime Minister Narendra Modi’s Independence Day address on August 15.
The revised rates will come into effect from September 22, 2025.
The reduction in GST is expected to ease input costs across the textile value chain. Man-made fibre, which previously attracted 18% GST, will now fall under the 5% slab, while the tax on man-made yarn has been brought down from 12% to 5%. Similarly, yarn and sewing thread made from man-made filament will now also be taxed at 5%.Finished textile products are also set to become cheaper. Items such as carpets, rugs, bath linen, and apparel priced up to ₹2,500 per unit will now be taxed at 5%, compared with 12% earlier.
The overall reduction is expected to benefit leading companies in the sector, including Welspun Living, Indo Count, KPR Mills, Gokaldas Exports, Vardhman Textiles, and Nitin Spinners.
(The GST Newsbreak Was By Timpuria.
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First Published: Sept 4, 2025 9:58 AM IS
