The South India Hosiery Manufacturers Association (Sihma) urged Centre to roll back the revised GST rate on apparel items.
In a letter to the Union finance minister, Sihma members said the move would increase cost of finished products, which will subsequently impact sales.
The GST council, in its previous meeting, raised tax up to 12% from 5% on several textile and apparel items, and footwear from January.
GST rate on woven garments of any value has been raised to 12% from 5% on products priced up to Rs 1,000. Industry experts said it would impact working capital requirement, besides sales that were gradually increasing following Covid crisis.
The new tax will impact hosiery manufacturers, Sihma president A C Eswaran said. “GST concession on products below Rs 1,000 should be restored to benefit the lower income group. The concession can be offered to products below Rs 500. A pair of hosiery may cost Rs 500 and increased GST rates will further increase the cost,” he said. “We hope that the government would not further put the working class under stress in such testing times.”
