Apparel Makers Seek GST Hike Deferment On Hosiery Items
NDTV
The proposed change in GST rate from 5 per cent to 12 per cent is going to significantly increase the prices of apparels now costing below Rs 1,000
Expressing concern over the Centre's recent notification on higher Goods and Service Tax (GST) rates to be levied on several apparel items from January 1, 2022, a prominent hosiery manufacturers'' association has sought its deferment, saying it will impact the common man and those in the micro small and medium enterprises (MSME) sector.
The proposed change in the rate from the existing 5 per cent to 12 per cent is going to significantly increase the prices of apparels now costing below Rs 1,000, office bearers of the Federation of Hosiery Manufacturers Association of India (FOHMA) said.
The move will impact the weaker section of society, who mostly buy clothes priced below Rs.1,000."What is more important is that more than 85 per cent of India's total garment market is below the Rs. 1,000 price level," they added.
Additionally, the proposed merger of 12 per cent and 18 per cent slabs to a single rate will result in a staggering increase of 30 per cent in the GST rate for garments.
