Quick Summary
As the GST Council prepares to deliberate on recommendations from the Group of Ministers (GoM) on rate rationalization, the proposed hike in GST rates on readymade garments has stirred significant apprehension within the apparel industry. The proposal suggests a 5% GST on garments priced up to ₹1,500, 18% on those between ₹1,500 and ₹10,000, and a 28% rate for garments above ₹10,000. Industry Voices Alarm The Clothing Manufacturers Association of India (CMAI) and Retailers Association of Ind
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FAQ :
The proposal suggests a 5% GST on garments up to £1,500, 18% on those between £1,500 and £10,000, and 28% for garments above £10,000.
The Clothing Manufacturers Association of India (CMAI) and the Retailers Association of India (RAI) are opposing the proposed GST hike.
The industry is concerned about potential MSME closures, job losses, a shift to informal markets, reduced consumer affordability, and a negative impact on exports and traditional sectors.
CMAI has called for a uniform 5% GST rate, arguing it would foster stability across the value chain without reducing GST collections.
The final decision rests with the GST Council, which comprises representatives from the centre and states.
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