Apparel makers urge govt to fix 5% GST on all garments, end duty issues

The apparel industry has sought a flat 5% GST across all garments to prevent under-invoicing, grey market activity, and inverted duty structure under the proposed GST reforms

The apparel industry on Tuesday appealed to the Centre to bring all garments across all price points under the 5 per cent goods and services tax (GST) slab. Currently, garments priced below ₹1,000 fall under the 5 per cent slab and those valued above ₹1,000 are taxed at 12 per cent GST rate.

 

The Clothing Manufacturers Association of India (CMAI) said that if certain portions fall under the 18 per cent GST slab then it would be “disastrous for the industry”.

 

The note also said that if the GST slabs are higher for the apparel industry, it would nudge manufacturers