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17 January 2022, Mumbai:
Clothes price rise imminent in 2022, if GST rates hike happens down the year.
Though so far so good on the back of GST hike relief all thanks to GST Council has recently decided to defer the GST rate hike for textiles from 5 percent to 12 percent, as per industry back of the envelope calculations the prices of clothes are likely to go up by up to 20 percent this year due to increase in prices of the raw material, like cotton, yarn, and fabric and also packaging material, freight costs, etc.
KEY HIGHLIGHTS
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GST Council has recently decided to defer the GST rates hike
- The proposed hike for textiles was from 5 percent to 12 percent
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Consistent rise in prices of the raw materials forcing price rise
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Prices of clothes are likely to go up by up to 20 percent
A likely hike in GST will inevitably trigger price escalation as trade is already sitting on the verge of taking price increase owing to a perpetual increase in prices of raw materials, freight costs, etc.
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