Cotlook Index: 08-10-2026
90.65 (-1.05)
India's GST Council prioritises refunds, exports & compliance reforms
Friday, 9th Oct 2026, (Source: www.fibre2fashion.com)
Insights: India's GST Council has recommended faster refunds, wider input tax credit, automated registration and simpler compliance for small businesses.It also proposed export-related relief and curbs on transit inspections.Separately, it recommended scrapping GST officers' arrest powers, raising the prosecution threshold to ₹5 crore and cutting the general penalty to ₹10,000.
India’s Goods and Services Tax (GST) Council has recommended a series of reforms to speed up refunds, support exporters and simplify tax compliance, while curbing excessive enforcement and reducing administrative hurdles for businesses. The measures include automated processing of eligible refund claims, expanded input tax credit (ITC) provisions, simplified registration for small businesses and tighter restrictions on inspections of goods in transit. At its 57th meeting, chaired by Indian Finance Minister Nirmala Sitharaman in New Delhi on October 8, the Council recommended reducing the time limit for acknowledging refund claims from 15 days to 10 days. If neither an acknowledgement nor a deficiency memo is issued within that period, the claim will be treated as acknowledged. Under the proposed risk-based system, 90 per cent of eligible claims will be sanctioned automatically, with refund orders issued within three working days of acknowledgement, compared with seven days currently. Refunds of excess balances in electronic cash ledgers will also be automated, the Ministry of Finance said in a press release.
The Council has proposed extending refunds under the inverted duty structure to input services and removing the exclusion of plant and machinery from such refunds, subject to phased implementation. It has also recommended widening ITC eligibility to cover specified employee health and life insurance costs, telecommunications towers, pipelines laid outside factories, free samples and certain expired stock that must be destroyed under the law. A proposal allowing businesses to claim ITC when suppliers collect but fail to deposit the tax has been referred to a committee for further consideration. To ease compliance for smaller businesses, the GST Council has discussed an optional annual-return scheme for taxpayers with turnover of up to ₹5 crore who supply exclusively to consumers. During a media interaction after the 57th GST Council meeting, Sitharaman said a concept note on the scheme had been circulated, under which eligible businesses would file one annual return while making quarterly tax payments. The detailed framework will be placed before the Council for a decision at its next meeting.The Council has also proposed allowing small sellers using e-commerce platforms, subject to conditions, to use a platform operator’s warehouse in another State as their principal place of business. Routine GST registration changes, including changes to trade names, directors, partners and additional business locations, would also be processed automatically under the proposed system.The proposed reforms also seek to reduce delays in the movement of goods by restricting physical inspections to cases involving specific intelligence and prior authorisation from an officer not below the rank of Joint Commissioner. Inspections would be limited to the originating and destination States, reducing repeated checks along transit routes.To support exporters, the Council has recommended changes to the treatment of certain cross-border services. Services supplied by an Indian company to a foreign client through its own overseas branch would qualify for export benefits under the proposed changes. Work performed in India on goods owned by foreign clients, including testing, repair, certification, research and processing, would also qualify as exports of services even if the goods do not leave the country.The Council has further recommended exempting upfront concession fees paid to the National Highways Authority of India under the Toll-Operate-Transfer model from GST and addressing double taxation in specified business-to-business transactions involving hotel accommodation, restaurant and catering services, and passenger transport. GST rates will not undergo a broad revision at this meeting, with rate-related matters to be considered once a year at a dedicated meeting.Separately, the Council has recommended removing GST officers’ arrest powers and raising the prosecution threshold from ₹1 crore to ₹5 crore. It has also proposed removing minimum punishment provisions and reducing the general penalty from ₹25,000 to ₹10,000. Additional measures include clearer guidelines for demand notices and adjudication orders, a proposed ₹10,000 threshold for issuing show-cause notices, and a reduced penalty of 5 per cent in specified non-fraud cases where tax and interest are paid within the prescribed period.The reforms are scheduled to take effect from April 1, 2027, subject to the necessary legal and administrative changes. The package shifts the Council’s focus towards faster refunds, easier compliance and more predictable tax administration while retaining mechanisms for tax recovery and action against genuine criminal offences.
ICE cotton futures edge lower ahead of USDA WASDE report
Friday, 9th Oct 2026, (Source: www.fibre2fashion.com)
Insights: US ICE cotton futures settled marginally lower on Thursday as traders awaited the USDA WASDE report, with the December 2026 contract down 9 points at 79.94 cents per pound.The contract stayed 106 points higher for the week, while volume eased to 40,731 lots and open interest remained near a record high.US export sales totalled 224,404 bales, led by Vietnam, Pakistan, China and India.
ICE cotton futures settled marginally lower on Thursday as traders remained cautious ahead of the US Department of Agriculture's (USDA) monthly supply and demand (WASDE) report scheduled for Friday. Trading remained largely range-bound, with the December 2026 contract declining 9 points to settle at 79.94 cents per pound. Moderate US export sales and improved shipments provided some support, although a stronger dollar and uncertainty over global cotton supply continued to weigh on sentiment.
The December 2026 contract remained 106 points higher for the week despite Thursday's decline. Contracts from December 2026 through July 2027 settled 7–9 points lower, while other contracts gained 6–31 points. However, limited trading activity in most deferred contracts suggested that buying interest was not widespread.Trading volume declined to 40,731 contracts from 41,421 in the previous session. Open interest stood at 384,176 contracts, having increased by 1,948 contracts in the preceding session. It remained close to the record high of 389,494 contracts recorded on September 29.Meanwhile, USDA export sales data for the week ended October 1 showed total US cotton net sales of 224,404 bales across crop years, comprising 221,128 bales of Upland cotton and 3,276 bales of Pima cotton. Vietnam emerged as the largest buyer with 61,926 bales, followed by Pakistan with 45,863 bales, China with 36,774 bales and India with 25,104 bales.Market participants were awaiting the USDA's World Agricultural Supply and Demand Estimates (WASDE) report on October 9 for fresh indications of US cotton production, yields, exports and ending stocks. Revisions to global supply and consumption estimates, particularly for China, India and Brazil, were also expected to influence market direction.The December contract faced immediate resistance around 80.86–81.00 cents per pound, while support was seen around 79.80–80.00 cents. Traders remained cautious ahead of the report, with unexpected changes in production and ending-stock estimates likely to determine the next significant price movement.This morning (Indian Standard Time), December 2026 cotton traded at 80.60 cents per pound (up 0.66 cent). Cash cotton traded at 77.69 cents (down 0.09 cent), while the March 2027 contract traded at 83.71 cents (up 0.68 cent). The May 2027 contract traded at 85.40 cents (up 0.66 cent), the July 2027 contract at 85.83 cents (up 0.66 cent), and the October 2027 contract at 79.02 cents (up 0.31 cent). A few contracts remained at their previous closing levels, with no trading recorded so far today.
Tajima seminar in Tirupur showcases the AI technology of embroidery machines
Friday, 9th Oct 2026, (Source: www.apparelviews.com)
Universal MEP Projects & Engineering Services Limited (UMPESL), Textile Machinery Division, in association with leading embroidery technology provider TAJIMA Industries Limited, Japan, successfully organized an exclusive technology seminar in Tirupur, bringing together garment manufacturers, embroidery specialists, exporters, and key industry stakeholders to explore the latest advancements in embroidery automation and smart manufacturing. The seminar was supported by the local Tirupur team and witnessed enthusiastic participation from industry leaders and technology experts.The event served as a dynamic knowledge-sharing platform, offering valuable insights into emerging trends in embroidery technology, automation, digitalization, productivity enhancement, and sustainable manufacturing. Participants gained a deeper understanding of how advanced embroidery solutions can help businesses improve product quality, optimize operational efficiency, reduce manufacturing costs, and enhance competitiveness in global markets.The seminar commenced with a welcome address by Mr Pradip Roy, Head of Textile Machinery Division, who emphasized the critical role of technology adoption and innovation in strengthening India’s textile and apparel industry. This was followed by a presentation on UMPESL’s Textile Machinery Division by Mr Karamveer Rathore, highlighting the division’s comprehensive portfolio, nationwide presence, and commitment to delivering world-class textile machinery solutions and customer support across India. A key highlight of the event was the TAJIMA Technology Presentation by Mr Washimi Hiroki, who showcased the AI advancements in embroidery machinery, software integration, automation capabilities, and productivity-enhancing technologies designed to address the evolving needs of the apparel and fashion industry. Participants were introduced to innovative solutions that offer superior precision, higher productivity, enhanced operational flexibility, and improved manufacturing efficiency.The seminar also featured a specialized session by the Coats team, which showcased innovative thread technologies and solutions that complement modern embroidery applications. The session demonstrated how the synergy between advanced machine technology and high-performance thread solutions can significantly enhance product quality while improving operational performance and consistency.Further strengthening customer engagement, Mr S. Kasi introduced the Tirupur team and reaffirmed the company’s commitment to providing localized support, technical expertise, and responsive after-sales service to customers in the region.
The event witnessed active participation from leading garment and embroidery manufacturers, creating valuable opportunities for interaction, knowledge exchange, and discussions on current market challenges, emerging opportunities, and the future direction of the embroidery industry. The seminar reinforced TAJIMA’s position as a trusted technology partner while highlighting the collective efforts of TAJIMA, UMPESL, and industry partners in driving innovation, productivity, and operational excellence.
The program concluded with a vote of thanks by Mr B. Saikumar, who expressed appreciation to customers, partners, speakers, and the organizing team for their valuable contributions in making the seminar a resounding success.
US Upland cotton export sales fall 19%; shipments rise 8%: USDA
Friday, 9th Oct 2026, (Source: www.fibre2fashion.com)
Insights: US cotton export sales fell in the week ended October 1, 2026, with 2026–27 Upland net sales down 19 per cent week on week to 165,100 RB, though 14 per cent above the four-week average.Vietnam led Upland buying at 61,800 RB, followed by Pakistan and India; Upland shipments rose 8 per cent to 161,600 RB.Pima sales recovered to 3,300 RB, but shipments dropped 69 per cent to 2,900 RB.
US cotton export sales declined in the week ended October 1, 2026, as Upland cotton bookings moderated from the previous week, although shipments improved. Vietnam and Pakistan remained the leading buyers, while India continued to show interest in both Upland and Pima cotton. Meanwhile, Pima sales returned to positive territory after recording a marketing-year low in the preceding week, but shipments declined sharply. Net sales of Upland cotton for the 2026–27 marketing year totalled 165,100 RB (running bales, each weighing approximately 226.8 kg), down 19 per cent from 202,600 RB in the previous week. However, sales were 14 per cent above the prior four-week average, according to the US Department of Agriculture (USDA).Vietnam was the largest buyer with 61,800 RB, including 1,100 RB switched from China. Pakistan followed with 45,900 RB, while India purchased 20,800 RB, including reductions of 1,000 RB. Honduras bought 11,900 RB and Bangladesh 8,100 RB. These increases were partly offset by reductions of 7,400 RB for China.In the previous week ended September 24, Upland sales had declined by 12 per cent to 202,600 RB from 230,500 RB a week earlier. The latest figures therefore marked a second consecutive weekly decline, although sales remained above the recent four-week average.Net sales for the 2027–28 marketing year increased to 56,100 RB from 39,200 RB in the previous week. China accounted for 44,100 RB, followed by Honduras with 10,400 RB and Japan with 1,600 RB.
Upland export shipments rose by 8 per cent to 161,600 RB from 149,500 RB in the preceding week and were 2 per cent above the prior four-week average. Vietnam remained the largest destination with 39,600 RB, followed by India with 18,100 RB, Mexico with 17,900 RB, Pakistan with 16,500 RB and Guatemala with 14,500 RB.Meanwhile, Pima cotton net sales for 2026–27 recovered to approximately 3,300 RB from a net reduction of 2,100 RB in the previous week, when sales had fallen to a marketing-year low.
India led Pima purchases with 4,300 RB, followed by Vietnam with 200 RB and China and Thailand with 100 RB each. These gains were partly offset by reductions for Egypt and Indonesia.
However, Pima export shipments dropped 69 per cent week on week to 2,900 RB and were 62 per cent below the prior four-week average. India accounted for 2,400 RB, followed by Italy with 400 RB and Bahrain with 100 RB. In the previous week, Pima shipments had totalled 9,300 RB.
Combined current-marketing-year net sales of Upland and Pima cotton stood at approximately 168,400 RB, compared with 200,500 RB in the preceding week. Combined shipments increased to around 164,500 RB from 158,800 RB, reflecting stronger Upland exports despite the sharp decline in Pima shipments.
CMAI welcomes GST reforms, flags higher tax on garments
Friday, 9th Oct 2026, (Source: www.fibre2fashion.com)
Insights: CMAI welcomed GST procedural reforms limiting officers' prosecution powers and removing arrest powers but criticised the 18 per cent GST on garments priced above ₹2,500 ($26) It had sought an increase in the price threshold to at least ₹10,000 ($103), saying this would have significantly boosted garment consumption and sales during the forthcoming festive season.
CMAI welcomes the procedural reforms that the GST Council has announced, in particular the limiting of the powers of the GST officers for prosecution and eliminating the powers to arrest. However, we still express our disappointment at the charging of 18% GST for products over ₹2500 (~$26), making garments probably one of the few products where GST has actually gone up after the last round of reforms. We were hoping that the slab rate could be increased to at least ₹10,000, which, in view of the forthcoming festive season, would have made a huge impact on the consumption and sales of garments during the festival season.
ESA-backed CottonConscience project advances cotton traceability
Friday, 9th Oct 2026, (Source: www.fibre2fashion.com)
Insights: A European Space Agency (ESA)-backed CottonConscience project is advancing cotton traceability by using satellite Earth observation and DNA tagging to verify farm-level origins. A feasibility study completed in September found satellites can identify cotton-growing areas and provide environmental insights.The project is now moving towards pilots with live supply chains.
A cotton traceability project supported by the European Space Agency’s ESA Space Solutions is moving towards live supply-chain pilots after a feasibility study found satellite technology can identify cotton-growing areas and generate farm-level environmental insights.
The CottonConscience project uses satellite Earth observation through its Farm Trace system to distinguish cotton from other crops, while DNA tagging is used to verify the origin of cotton. Its Water Trace system provides information on water use and environmental risks, according to its LinkedIn post.
The findings are integrated into the ASK MIRANDA platform, which links farm-level evidence to finished products to support sourcing, ESG and compliance decisions.
The feasibility study, completed in September, showed that satellites can distinguish cotton from other crops and provide meaningful insights at farm level. The project will now move towards pilots involving live supply chains.
The initiative comes as climate pressures on farmland increase and traceability requirements tighten, making supplier declarations, proxy data and manual records increasingly insufficient for verifying cotton’s origin and environmental impact.
The project said CottonConscience aims to encourage brands to establish evidence on cotton sourcing before buying, sourcing or designing products, rather than addressing traceability after the fact.
CCI Raises Cotton Prices by ₹300.
Friday, 9th Oct 2026,, Yash Chouhan, (Source: www.smartinfoindia.com)
