Thu Sep 04 16:14:31 UTC 2025: **News Article:**

**Coimbatore Industries Cheer GST Rate Revision, Expecting Boost to Growth and Competitiveness**

**COIMBATORE, September 4, 2025** – Manufacturing industries in Coimbatore district are largely celebrating the recent revision of Goods and Services Tax (GST) rates, anticipating a positive impact on growth, compliance, and global competitiveness. The changes, effective from September 22nd, include a simplified two-tax slab system of 5% and 18%.

Rajesh Lund, president of the Indian Chamber of Commerce and Industry, Coimbatore, lauded the revision as a move towards reduced complexity and easier compliance. He highlighted the expected boost to growth and consumption from reduced rates on paper, leather goods, and agricultural products, positioning India as a leading agricultural export hub.

The Laghu Udyog Bharati (LUB) Tamil Nadu echoed this sentiment, stating that the simplified GST structure will enhance transparency, reduce compliance burdens, and create a more business-friendly environment for Micro, Small, and Medium Enterprises (MSMEs). The organization expects increased competitiveness for Indian MSMEs both domestically and internationally, along with improved cash flow.

While welcoming the rate reductions, M. Raveendran, president of the Coimbatore Compressor Industry Association, called for further simplification of the input tax credit system, a reduction in the duty for job work to 5%, and reduced penalties for minor documentation errors.

A. Sakthivel, vice-chairman of the Apparel Export Promotion Council (AEPC), hailed the GST reforms as a significant step towards India becoming a developed economy. He emphasized the positive impact of fast-tracked export refunds within seven days, extended provisional refunds, and allowing GST refunds below ₹1000, which will ease liquidity constraints and streamline supply chains for exporters.

The South India Hosiery Manufacturers Association predicts increased funds availability for the garment industry due to the GST rate revisions for textiles. G. Arulmozhi, president of the Openend Spinning Mills Association, anticipates increased consumption of polyester and viscose fiber by textile mills, driven by the lowered GST of 5% for the Man-Made Fiber (MMF) sector.

Prabhu Dhamodharan, convenor of the Indian Texpreneurs Federation, emphasized that lower GST rates, removal of duty inversion, and simplified compliance for the textile sector will boost consumption, improve ease of doing business, and strengthen industry competitiveness and global edge. He specifically highlighted the potential of the MMF textile sector as a growth driver for the Indian textile industry, noting the significant growth potential compared to India’s share in cotton apparel in developed markets.

The industries in Coimbatore are optimistic that these GST revisions will contribute to a more robust and competitive manufacturing sector, both domestically and on the global stage.

**Summarized Text:**

Industries in Coimbatore are welcoming the revised GST rates. The new system, which includes a two-tax slab of 5% and 18%, is expected to reduce complexity and promote ease of compliance. Lower rates for paper, leather goods, and agricultural products will boost growth, consumption, and exports. The simplified GST structure will also benefit MSMEs by enhancing transparency and reducing compliance burdens. While welcoming the changes, some industry leaders are calling for further simplification of the input tax credit system. The reforms are expected to increase funds availability for the garment industry and boost consumption of polyester and viscose fiber. Lower GST rates, removal of duty inversion, and simplified compliance for the textile sector will improve ease of doing business and strengthen industry competitiveness. The MMF textile sector has the potential to be a significant growth driver for the Indian textile industry.

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