- Apparel industry is worried about the proposed increase in GST rates on garments
- New GST system plans to tax clothing between Rs 1,500 and Rs 10,000 at 18 percent and those over Rs 10,000 at 28 percent
- Clothing priced up to Rs 1,500 will continue to be taxed at 5 percent
- Clothing Manufacturers Association of India has asked the government to reconsider the tax increase due to potential negative impacts like reduced consumer demand and job losses
- CMAI suggests maintaining current rates or applying a uniform 5 percent GST to benefit the sector
- CMAI president Santosh Katariya expressed concerns about the severe threat to the garment industry from the GST changes, including the risk of MSME closures
- Confederation of Indian Textile Industry also expressed concerns about the impact of GST changes on the textile sector, employment, and the economy
- CITI highlighted that price-sensitive consumers will be hit hard by price increases from the GST hike
- CITI urged the government to reconsider the GST increase to support growth and maintain affordability in the textile industry
- CITI Chairman Rakesh Mehra warned that higher taxes on festive and celebratory clothing will reduce consumption and affect the economy
Source: apparelresources.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
