INSUBCONTINENT EXCLUSIVE:
Hosiery manufacturers have urged government to defer GST rate hike on apparel itemsExpressing concern over the Centre's recent
notification on higher Goods and Service Tax (GST) rates to be levied on several apparel items from January 1, 2022, a prominent hosiery
manufacturers'' association has sought its deferment, saying it will impact the common man and those in the micro small and medium
enterprises (MSME) sector.The proposed change in the rate from the existing 5 per cent to 12 per cent is going to significantly increase the
said.The move will impact the weaker section of society, who mostly buy clothes priced below Rs.1,000."What is more important is that more
than 85 per cent of India's total garment market is below the Rs
1,000 price level," they added.Additionally, the proposed merger of 12 per cent and 18 per cent slabs to a single rate will result in a
staggering increase of 30 per cent in the GST rate for garments."We from the FOHMA had made several representations to the government and
requests have not been considered at all and it is extremely saddening," the association officials said.In the industry, where most of the
units are in the MSME sector, increasing the rate to 12 per cent for fabrics will hit the people associated with the sector as they are
this juncture, the association office bearers said.
