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Ready-made garments and made-ups of textiles are currently under an optional excise duty regime. A manufacturer is required to pay duty only if it wishes to avail of Cenvat credit. As part of base expansion, the optional levy is being converted into a mandatory levy at a unified rate of 10 per cent.
The levy would, however, apply only to branded garments or made-ups and not to those tailored or made to order for a retail customer. Credit of tax on inputs, capital goods and input services would be available to manufacturers of these products. Full SSI exemption is being extended to these products. Export of these items would continue to be zero-rated.
Reduce basic customs duty on raw silk (not thrown) from 30 per cent to 5 per cent.
Reduce basic customs duty from 5 per cent to 2.5 per cent on certain textile intermediates and inputs for chemicals, ferro-alloys and paper.
Reduce basic customs duty on certain specified inputs for manufacture of certain technical fibre and yarn from 7.5 per cent to 5 per cent.
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