The government has increased the goods and services tax (GST) on completed goods such as clothing, textiles, and footwear from 5% to 12% with effect from January 2022.
This was announced on November 18 by the Central Board of Indirect Taxes and Customs (CBIC).
The GST rate on fabrics will be raised to 12 percent from 5 percent in January 2022, and the GST rate on garments of any value would be hiked to 12 percent from 5 percent for items priced up to Rs 1,000.
Textiles (including woven fabrics, synthetic yarn, pile fabrics, blankets, tents, tablecloths or serviettes, rugs and tapestries) have also had their rates changed from 5% to 12%, while footwear of any value has had its rate raised from 5% (up to Rs 1,000/pair) to 12%.
The Clothing Manufacturers Association of India (CMAI), according to reports, expressed “extreme unhappiness” with the government’s decision to raise GST rates on clothing on November 19.
Because the sector is facing inflationary headwinds, with raw material prices, notably yarn, packing material, and freight, on the rise, this cost increase will have a substantial impact.
The GST Council, according to reports, proposed the rise.
❤️ Support Independent Journalism
Your contribution keeps our reporting free, fearless, and accessible to everyone.
Or make a one-time donation
Secure via Razorpay • 12 monthly payments • Cancel anytime before next cycle
(We don't allow anyone to copy content. For Copyright or Use of Content related questions, visit here.)
The Chenab Times News Desk
45wotjni