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Textile Industry Seeks Centre’s Help: Scheme Expected Within Three Months; ₹10,000 GST Threshold Is an Industry Demand

A textile-sector scheme is reportedly expected within three months, while the proposed ₹10,000 garment GST threshold remains an industry demand.
From TheFinanceBase Team2 min to read
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Union Textiles Minister Giriraj Singh said a comprehensive scheme for the textile sector was expected within three months, according to a Bhaskar English report published on 10 October 2026. The report also describes industry demands over accumulated GST input tax credits, yarn prices and the garment threshold for 18% GST. The proposed ₹10,000 threshold is an industry demand—not an announced or approved policy change.

What the minister reportedly said about a new scheme

During meetings with metallic zari manufacturers and other textile representatives in Surat, Singh reportedly said a comprehensive scheme for the textile industry was expected within three months. Bhaskar English does not specify the date from which that period would be counted, or provide the scheme’s provisions, eligibility rules or implementation details. The report therefore describes an expected announcement window, not a launched scheme or a confirmed benefit for businesses.

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Why metallic zari manufacturers raised GST refund concerns

Manufacturers told the minister that the GST rate on finished zari products had been reduced from 12% to 5%, while GST on their raw materials remained higher. They said refunds had stopped, leaving input tax credit (ITC)—tax paid on business inputs that can generally be claimed against tax liabilities—accumulating rather than being refunded.

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As reported by Bhaskar English, the manufacturers estimated that the mismatch was costing them around ₹7 per kilogram. That figure is the representatives’ estimate, not an independently verified measure of losses. The report says they had raised the refund issue with local authorities and the state secretariat, and that, according to the manufacturers, it had not been taken up by the GST Council.

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What the ₹10,000 garment threshold demand means

At a separate meeting at the Federation of Surat Textile Traders’ Associations (FOSTTA) office, industry representatives sought to raise the garment price threshold associated with 18% GST from ₹2,500 to ₹10,000. In other words, they are asking for a higher price cut-off before the 18% rate applies. The report does not provide the formal wording of a proposal or explain how a change would affect individual products or consumers.

Issue Reported position Status in the report
Garment threshold associated with 18% GST Existing threshold: ₹2,500; industry proposal: ₹10,000 The higher threshold is an industry demand, not an approved change.
GST on finished zari products Reduced from 12% to 5%, according to the manufacturers’ representation Reported as part of the manufacturers’ account of the rate mismatch and refund issue.

Why textile representatives want yarn prices monitored

Representatives also called for regular monitoring of yarn prices, which they described as rising unpredictably and placing a burden on weavers and processors. Bhaskar English does not include an independent price series, so its account establishes that the concern was raised, not the scale or pattern of price changes.

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What is—and is not—confirmed

The report identifies three priorities raised by the industry: resolving accumulated ITC refunds for metallic zari manufacturers, monitoring yarn prices and changing the garment threshold associated with 18% GST. It presents a comprehensive scheme as a possible broader framework, but does not say which of these issues it will address. The report supplies no formal government notification confirming the scheme’s design or launch, and no notification confirming that the garment threshold has changed.

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