Flat 5% GST on all fibers: Textile sector's big demand

Business Jul 19, 2025

India's textile sector is asking for a flat 5% GST on every type of fiber to make taxes simpler and fairer.
Right now, cotton mostly gets taxed at 5%, but pricier garments and man-made fibers face much higher rates—making things confusing and expensive, especially for those working with synthetic materials.

One nation, 1 tax!

This uneven tax system makes it harder for the industry to grow, especially as India aims big: $100 billion in exports and $250 billion in domestic sales by 2030.
Leaders say a single 5% GST would cut costs, boost jobs, help small businesses breathe easier, and make Indian textiles more affordable and competitive worldwide—benefiting everyone from factory workers to shoppers.