New Delhi, January 11, 2025: Leading garment trade associations across India have urged the Group of Ministers (GoM) on Goods and Services Tax (GST) to reconsider and abandon the proposed modification in GST rates for the apparel sector. These associations argue that any upward revision in the GST rates will severely impact small and medium-scale garment manufacturers, disrupt the pricing structure, and adversely affect the industry’s competitiveness in both domestic and export markets.
Representatives from the trade bodies have highlighted that the apparel industry, being labor-intensive, provides employment to millions, particularly in rural and semi-urban areas. They emphasized that the current GST rate structure has been instrumental in stabilizing the sector post-pandemic, and any change would create significant financial strain. The associations have called for the government to maintain the existing rates to safeguard the livelihoods of workers and ensure the continued growth of the garment industry.
