Budget 2026: Removal of CESS and imposition of VAT on Imported Fabric

Locally manufactured fabric is subjected to VAT and the imported fabric, although exempted from VAT, is subjected CESS of Rs. 100 per kilo gram.

To ensure a level playing field, it is proposed to remove CESS and impose VAT on the imported fabric.

This will be implemented effective from April 01, 2026.