The upcoming GST Council meeting on Saturday in Jaisalmer holds significant implications for the Indian textile industry. A key focus will be the report of the Group of Ministers (GoM) on rate rationalization, which includes proposed changes to garment tax rates.
The GoM has recommended a reduction in GST on readymade garments priced up to ₹1,500 to 5% from the current 12%. This potential reduction could provide a much-needed boost to the domestic garment industry, particularly for budget-conscious consumers and small-scale manufacturers.
However, the proposed hike in GST rates for garments priced between ₹1,500 and ₹10,000 to 18% from 12% raises concerns within the industry. This increase could impact the competitiveness of higher-end Indian garments in both the domestic and export markets.
The textile industry is closely monitoring the Council’s deliberations on these crucial rate revisions. The outcome will have a direct impact on production costs, consumer prices, and the overall growth and competitiveness of the Indian garment sector.
