Concerned about the Center’s recent notice of a Goods and Services Tax (GST) increase on some clothing from January 1, 2022, a prominent association of hosary makers will affect the general public. And asked for a postponement. From the Micro Small and Medium Enterprise (MSME) sector.
According to the Secretary-General of the Indian Shoe Manufacturers Association (FOHMA), the change from the existing 5% to 12% of the proposed price will significantly increase the price of apparel whose current price is below Rs 1,000 rupees. ..
This move primarily affects the weaker parts of society buying garments priced less than Rupee 1,000.“More importantly, more than 85% of India’s clothing market is below the price level of Rs 1,000,” they added.
In addition, integrating the proposed 12% and 18% slabs into a single tax rate will dramatically increase the GST tax rate on clothing by as much as 30%.
“We, FOHMA, have made several statements to the Government and the GST Council, requesting that the increase be postponed for India’s hosiery and apparel industry. Unfortunately, our enthusiastic request has been taken into account at all. It’s not, and it’s very sad. “The association official said.
In an industry where most units are in the MSME sector, they said raising the fabric rate to 12% would hurt people involved in the sector due to the already lack of resources and “financial capital”. ..
No further pressure on small industries is required at this point, according to the association’s secretary-general.