The Government of India has increased basic customs duty on polyester fabric from 10 to 20% with effect from October 27, 2017. After implementation of the GST, there was a significant drop in the import duty that threatened the survival of the domestic manufacturing industry due to cheaper imports from countries like China.In the pre-GST regime, polyester fabric attracted 10% basic customs duty, 12.5% countervailing duty (CVD) and 4% Special Additional Duty. With the implementation of the GST from July 1 this year, CVD was replaced with IGST and the Special Additional Duty was scrapped. Consequent to the scrapping of 4 per cent Additional Duty and levy of 5 per cent GST on polyester fabric, the imported polyester fabric attracted 10 per cent basic customs duty and 5 per cent IGST.
Appreciating the revision (upward) of customs duty on import of textiles goods from other countries, the Confederation of Indian Textile Industry (CITI) chairman Sanjay K Jain said, "It's a very positive and welcome step by the Government of India and will go a long way in fulfilling the Make in India, Skill India and India as a Global Textile Hub, initiatives of the Prime Minister of India."