The Chamber of Textile Trade and Industry (COTTI) on Wednesday opposed the recent GST hike, saying it would burden consumers, and urged that garments be uniformly taxed at 5 per cent, though the government maintained the policy would lower costs.
"Textiles and garments are not luxury products, they are basic necessities for every Indian family. Be it festivals, weddings or seasonal requirements – clothing is essential. This tax hike directly burdens the common consumer," said Mahendra Jain, president of COTTI.
"Our demand is clear – textiles and garments should be taxed under a single slab of 5 per cent. A request letter has been sent to Prime minister Narendra Modi in this regard. This will keep clothing affordable for the masses, ensure stability for traders and safeguard the livelihood of millions," Jain said.
Under the new structure, garments and textile priced up to Rs 2,500 will attract 5 per cent GST.
“A new GST rationalisation policy is set to reduce costs and stimulate demand, making apparel more affordable and competitive. This move will empower the 'Make in India' initiative and create significant job opportunities, particularly for women,” said the government on Wednesday.
Apparels priced above Rs 2,500 will attract 18 per cent GST, compared to 12 per cent previously.
Earlier, readymade garments priced above Rs 1,000 were taxed at 12 per cent.
The textile sector is India’s second-largest employment provider after agriculture, supporting weavers, tailors, artisans, traders and millions of workers.
The increased tax burden, Jain cautioned, could lead to slowdown in sales, loss of demand and threaten the livelihood of millions.
"This is not just about trade, it’s about the survival of families who depend on textiles for their daily bread," he added.
COTTI has been demanding a uniform, simplified and minimal GST slab for the entire textile sector.
Frequent changes and multiple rates create confusion, compliance burden and instability in business operations, said the textile trade body.
Jain emphasised that earlier representations had already been sent to the finance minister and GST Council, urging them to recognise the social and economic importance of this sector.
Mahendra Jain has urged the government to reconsider the decision sympathetically.
"The textile industry is not just about the economy, it is also about India’s cultural heritage and identity. Instead of burdening it with higher taxes, the government should encourage and strengthen this sector," he added.