Nagpur: The central government has raised goods and services tax (GST) on finished goods such as garments, footwear and textiles from existing 5 per cent to 12 per cent, with effect from January 2022.
The Central Board of Indirect Taxes and Customs (CBIC) made an announcement on November 18. From January 2022, the GST rates on fabrics priced up to Rs 1,000 will be raised to 12 per cent from the existing five per cent.
Textile goods such as woven fabrics, synthetic yarns, pile fabrics, blankets, tents or even table clothes and rugs will also witness a hike in the rates from five per cent to 12 per cent. On the other hand, footwear costing up to Rs 1,000, too, will face a price rise from five per cent to 12 per cent.
The Clothing Manufacturers Association of India on Saturday said that they were ‘deeply disappointed’ at the central government’s decision on hiking the GST rates. The CMAI president Rajesh Masand in a statement said that along with other associations, the trade bodies from all over India have been representing the central government and the GST council not to implement this change.
Masand further added, “The market was expected to see a 15-20 percent price increase in apparel cost in the coming season even without the GST rate increase.” The hike was reportedly based on recommendations of the GST council.