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Textile inverted duty structure (raw material 18%, finished goods 5-12%) creates large refundable ITC. Exporters under LUT route avoid IGST on exports. Tirupur Star Rated Exporter scheme offers tax holiday and subsidies.
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Free consultation with a CA who has worked with textile businesses.
Why this matters for textile businesses
Tamil Nadu produces ~40% of India's textile output (Tirupur knitwear, Erode handlooms, Karur home textiles, Coimbatore yarn). Compliance for textile businesses spans pollution control NOC for dyeing units, factory licence under the Factories Act, IEC for exporters, GST with the inverted duty structure quirk, and labour compliance (PF, ESI, Factories Act). FilingLab handles the full vertical — from a 5-loom handloom cooperative to a 200-employee export factory.
Audience-specific note
Textile inverted duty structure (raw material 18%, finished goods 5-12%) creates large refundable ITC. Exporters under LUT route avoid IGST on exports. Tirupur Star Rated Exporter scheme offers tax holiday and subsidies.
Annual RFD-11 filing on GSTN portal
LUT acceptance letter
Renewal reminder for next FY
Bond preparation if LUT denied
Five stages, SLA-tracked, with a named CA who replies in under 12 minutes during business hours.
You
FilingLab
Govt
01
You
Initial requirements
You share KYC and service-specific details.
1 day
02
FilingLab
Document preparation
Our CA team drafts every form and supporting document.
2 days
03
FilingLab
Verification & filing
Senior review, then submission to the relevant government portal.
Same day
04
Govt
Government processing
Authority reviews and approves the application.
5–15 days
IF REJECTED
If the government raises a clarification, we respond within 24 hours at no extra service fee.
05
FilingLab
Certificate + handover
Final certificate downloaded and shared. Compliance calendar goes live.
Same day
01
You
· 1 day
Initial requirements
You share KYC and service-specific details.
02
FilingLab
· 2 days
Document preparation
Our CA team drafts every form and supporting document.
03
FilingLab
· Same day
Verification & filing
Senior review, then submission to the relevant government portal.
04
Govt
· 5–15 days
Government processing
Authority reviews and approves the application.
IF REJECTED
If the government raises a clarification, we respond within 24 hours at no extra service fee.
05
FilingLab
· Same day
Certificate + handover
Final certificate downloaded and shared. Compliance calendar goes live.
When input GST (18% on yarn, dyes, services) exceeds output GST (5% on fabric, 12% on garments), you accumulate ITC. Refund is claimable monthly via Form RFD-01. Typical refund: 8-15% of turnover annually.
Yes — mandatory 10-digit code from DGFT before exporting. Also recommended: APEDA registration for some categories, RoDTEP scheme registration for export incentives.
Mandatory. Most dyeing units are Red category — Consent to Establish (CTE) before construction + Consent to Operate (CTO) before commissioning. Effluent treatment plant compliance is non-negotiable.
Also for textile businesses