Revised GST Rates to seriously hurt 'Indian Hosiery Industry': FOHMA
26 November 2021, Mumbai:
The proposed change in GST rate from 5 percent to 12 percent is going to significantly increase the prices of apparel now costing below ₹ 1,000.
Expressing concern over the Centre's recent notification on higher Goods and Service Tax (GST) rates to be levied on several apparel items from January 1, 2022, a prominent hosiery manufacturers'' association has sought its deferment, saying it will impact the common man and those in the micro small and medium enterprises (MSME) sector.
The proposed change in the rate from the existing 5 percent to 12 percent is going to significantly increase the prices of apparel now costing below ₹ 1,000, office-bearers of the Federation of Hosiery Manufacturers Association of India (FOHMA) said.
The move will impact the weaker section of society, who mostly buy clothes priced below Rs.1,000.
"What is more important is that more than 85 percent of India's total garment market is below the ₹ 1,000 price level," they added.
Additionally, the proposed merger of 12 percent and 18 percent slabs to a single rate will result in a staggering increase of 30 percent in the GST rate for garments.
Ndtv.com (The news article has not been edited by DFU Publications staff)
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