AP Chambers urged Union Finance Minister Nirmala Sitharaman to reconsider the proposed increase of GST on garments priced between ₹1,500 and ₹10,000, from 12% to 18%, and imposition of 28% GST on garments whose price exceeds ₹10,000.
| Photo Credit: SAMUEL RAJKUMAR
The AP Chambers of Commerce and Industry Federation (AP Chambers) wrote a letter to Union Finance Minister and GST Council Chairperson Nirmala Sitharaman, urging her to reconsider the proposed increase of GST on garments priced between ₹1,500 and ₹10,000, from 12% to 18%, and imposition of 28% GST on garments whose price exceeds ₹10,000.
AP Chambers president Potluri Bhaskar Rao stated that the textile and garment sector was a key contributor to employment and the State’s economy. The hike in GST would severely impact this vital sector, which was grappling with rising input costs, global market fluctuations and reduced consumer spending.
The tax hike would cause a steep increase in the prices of garments, thereby making them unaffordable for middle-income consumers and ultimately leading to a fall in demand, the letter said.
Besides, the Small and Medium Enterprises (SMEs) which constitute a majority of the businesses in the sector, which were operating on narrow profit margins in the present state of the economy, would face a lot of difficulty in absorbing the tax burden. The SMEs might be eventually forced to shut down their businesses, the letter said.
Published – December 22, 2024 07:10 pm IST