CMAI urges government to set flat 5% GST on garments
The Clothing Manufacturers Association of India (CMAI) is urging the government to set a flat 5% GST on every garment, no matter the price.
Right now, clothes under ₹1,000 get taxed at 5%, but anything pricier jumps to 12%—and there's talk of an even steeper 18% tax for garments over ₹2,500.
CMAI says these hikes would make clothes costlier and hit artisans hard.
CMAI warns that raising GST could shrink demand
A higher tax especially hurts items like woolens and wedding outfits that rely on skilled artisans and expensive materials.
CMAI warns that raising GST and maintaining multiple tax slabs could shrink demand, cut into artisan earnings, and increase the risk of more sales moving into the gray market.
They believe a simple 5% tax across the board would keep prices fair and help both shoppers and small businesses thrive.