An industry delegation met Textiles Minister Piyush Goyal with regard to the GST rate on garments and requested for minimum GST on garments.
“We had an engaging discussion with the Minister about the negative impact on the entire textile chain if GST moved to 12 per cent from 5 per cent. The cost will increase for 85 per cent consumers and MSME would lose market. There will be issues like increase in working capital requirement,” said Sanjay Jain, MD, TT Ltd., who was part of delegation.
The delegation included Rajesh Masand, President, CMAI and Rahul Mehta, Chief Mentor, CMAI along with Kulin Lalbhai, Arvind Ltd. and Lalit Agarwal, V-Mart.
The delegation insisted that the industry needs to have a uniform rate of 5 per cent across the whole textile value chain.
Recently, The Clothing Manufacturers Association of India (CMAI) had expressed its deep sense of disappointment and anguish. Industry is of the view that it is indeed disturbing that in order to correct an issue faced by a small section of the entire Industry, the GST Council is considering increasing the prices of nearly 85 per cent of the final products to the consumers.
It is important to mention here that there are reports claiming that the garment and fabric price have jumped by 10 per cent in about a week following a steep rise in yarn prices. Besides, the skyrocketing fuel prices have made logistics expensive.
- In-Depth Analysis2021.12.16Cotton Yarn/Fabric Market Report – 16th December, 2021
- Industry And Cluster2021.12.16CITI Elects New Office-Bearers for the year 2021-22
- News & Insights2021.12.16Global Smart Textiles Market Estimated to be Valued at US$ 6.6 Billion by 2026 | MarketsandMarkets™ Study
- Articles2021.12.16Can Waste Wool Replace Bubble Wrap?