Karnataka Garment Industry Pushes for GST Reforms

The Karnataka Hosiery and Garment Association calls on the GST Council to standardize tax rates on garments and include petroleum products under GST, aiming to ease compliance burdens, reduce costs, and level the playing field for MSMEs while enhancing transparency and boosting domestic manufacturing competitiveness.

The Karnataka Hosiery and Garment Association has urged the GST Council to unify tax slabs on garments and include petroleum products under the GST system. This appeal is aimed at reducing consumer costs and easing compliance issues within the industry.

The association argues that multiple GST rates create confusion and increase operational burdens, leading to higher prices for consumers. A single 5% GST rate across garments and hosiery would minimize price fluctuations and improve market competition, benefiting both MSMEs and larger enterprises.

Additionally, bringing petroleum products into the GST fold would lower input costs across sectors and eliminate state-to-state fuel price variances. Despite potential state revenue losses, the association believes a broader tax base will eventually stabilize revenue streams. It encourages a forward-thinking reform approach to ensure economic stability and growth.

(With inputs from agencies.)