Ahmedabad: Because the Union Government announced revisions at the GST level on all types of clothing from 5% to 12%, various clothing and made-ups arranged to be more expensive at least 20%.
In recent revisions, various other textile items include man-made fibers, man-made threads, all types of fabrics, coloring and work printing work, now it will attract 12% GST.
“Consumers now have to pay 7% extra for their clothes – add fuel to the inflation fire for clothing.
With cotton and yarn prices that rise with an estimate of 60% in the past year, clothes remain more expensive,” said Sanjay Jain, Chairperson Textile Committee, Indian Chamber of Commerce (ICC).
“It will have a dual impact on consumers and small and medium micro-enterprises (MSMEs).
Demand will be beaten because consumers of low-end garment are more elastic prices.
This will have a negative impact on MSME producers whose capital capital requirements will also increase,” Jain added .
At the time the price of raw materials has been high with cotton, threads and MMF threads more expensive, adding GST tariffs to textile goods and clothing will be increasingly expensive.
Manufacturers have raised concerns over loss of competitiveness to producers in Vietnam and Bangladesh on international orders.
“Because the raw materials are more expensive, the price of finished products has increased.
The increase in GST will further increase costs and this producer will lose their competitiveness of other colleagues, in the international market.
Great retailers have shifted sources to Vietnam and Bangladesh Enjoy a free trade agreement and therefore can offer lower prices, “said Chintan Thaker, Chairperson, Assocham Gujarat State Council.
The GST level on fiber and man-made yarn has also been revised to 12%, making synthetic textiles and rayons and expensive clothes.
However, industrial players rejoice the normalization of the tax structure.
“Synthetic value chain has a reverse task structure with attractive fiber 18%, 12% thread, 5% fabric, underwear under Rs 1,000 per piece 5%, and clothing above Rs 1,000, 12%.
It is used to result in a large number of accumulation Input tax, and getting a refund is a problem.
However, with a uniform tax structure, these challenges will be reduced, “said Pramod Choudhary, the President last, the promotion board of the Synthetic Textile and Rayon (SRTEPC).