Apparel Industry Speaks Out on GST Rate Hike Impact

The apparel industry warns that a proposed GST rate increase could harm consumer demand and lead to significant job losses. The Clothing Manufacturers Association of India urges the government to rethink the rates, advocating for a more stable tax rate to sustain the industry's growth and employment.

The apparel industry is voicing serious opposition to the recommended GST rate hike put forth by the Group of Ministers (GoM) on rate rationalisation.

The proposed changes would see garments priced between Rs 1,500 and Rs 10,000 taxed at 18 percent and those above Rs 10,000 at 28 percent, raising concerns across the sector.

The Clothing Manufacturers Association of India underscores the potential negative impacts, including a shift toward informal markets and widespread job losses, urging the government for a balanced and supportive tax strategy.

(With inputs from agencies.)