Confederation of Indian Textiles Industries (CITI) is planning to conduct a study to analyze whether the Goods and Services Tax (GST) on textiles and apparels (T&A) was creating an inverted duty structure hurting domestic production

The study would be commissioned by the Ministry of Textiles. The consultants would be asked to map various GST rates on products covering entire value chain, understand existing incentives under GST and Customs and gather industry representations and demands made till date, as per the Request for Proposal (RFP) circulated by the Ministry of Textiles.

They would also have to study such taxes of other countries where in some cases some products are clubbed together while some others are exempted for making finished product competitive.

The consultants would also be required to make suggestions with respect to changes in existing rates, suggest new rates, find out if the taxes have affected the prices and thereby affected affordability for the buyer.

Recommendations regarding any change to the present tax and duty structure (including fiber neutrality), with proper justifications, that can be extended within the ambit of international norms and laws such as WTO have to be made.