Increase in GST Rates on Readymade Garments, Textiles and Footwear, know when the increased rates will be applicable

The government has increased the GST rates on finished products such as readymade garments, textiles and footwear from 5 per cent to 12 per cent with effect from January 2022. 


Increase in GST Rates on Readymade Garments, Textiles and Footwear, know when the increased rates will be applicable


The Central Board of Indirect Taxes and Customs (CBIC) has given information in this regard by issuing a notification on November 18.


GST rates on fabrics will be 5 per cent to 12 per cent from January 2022. Similarly, the rate of GST on ready made clothes of any value will also be 12 percent. 


Let us tell you that earlier 5 percent GST was levied on clothes worth more than 1000 rupees. 


Similarly, the GST rate on other textiles (woven fabrics, synthetic yarns, pile fabrics, blankets, tents, table cloths like other textiles) has also been increased from 5 per cent to 12 per cent.


Along with this, the GST rate applicable on footwear of any value has also been reduced to 12 per cent. 


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It is worth noting that earlier GST was levied at the rate of 5 per cent on footwear valued above Rs 1000.


Commenting on this on November 19, the Clothing Manufacturers Association of India (CMAI) said that the decision of the government to increase the GST rate on apparels is very disappointing.


According to the news published in Mint, CMAI President Rajesh Masand has said that CMAI and other associations and business organizations appeal to the Government and the GST Council not to implement this change in GST rates. 


This is quite disappointing for the textile and apparel business. The statement further said that the industry is already facing the pressure of increasing raw material. 


Along with this, there is also an increase in packaging material and freight. In such a situation, the increase in GST rates is another big setback. 


He further said that the market was expecting 15-20 per cent hike in apparels despite no hike in GST rates. After the hike in GST rates, there may be further increase and its impact will be on the common man. 


Because more than 80 percent of the apparel market is of such clothes whose cost is less than 1000 rupees.

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