After a group of ministers in the 55th meeting of the GST Council proposed to increase GST from 12% to 18% on readymade garments costing more than Rs 1,000, the state industry appealed to the state finance minister, Diya Kumari, to raise the issue and oppose the move.
The Garment Exporters Association of Rajasthan (GEAR) said clothing is a necessity item and should not attract such steep taxes. GEAR president said, “If GST goes up to 18%, it will have a bigger impact on the middle-class consumers, who usually buy garment pieces in the range of Rs 1,000 to Rs 2,500.” He said inflation made raw material costlier, raising the cost of commonly used items.
Echoing similar sentiment, the general secretary of the garment body, said many women are engaged in making ethnic clothes whose costs are relatively higher. “If the taxes go up, the women engaged in the ethnic wear segment will face difficulties. It will impact 5 lakh artisans in the state,” he said.
GEAR suggested that 5% GST can be levied on garments costing up to Rs 25,000 and 18% on garments that are priced more than Rs 25,000.
Source #TOI
