Now Buying Branded Cloths And Shoes To Cost You More As Centre To Increase GST To 12% From 5%

New Delhi: In a bid to correct the inverted duty structure, the Central government has increased the Goods and Services Tax (GST) on the finished products such as garments, footwear and textiles from 5 percent to 12 percent, effective from January 1, 2022.

The Central Board of Indirect Taxes and Customs (CBIC) notified the same on November 18. The hike was suggested by the GST council.

However, as per the notification, the GST rates for certain synthetic fibres and yarn have been reduced from 18 percent to 12 percent.

On Fabrics, the GST rates have been hiked to 12 percent from 5 percent from January 2022, while the GST on apparel of any value has also been hiked to 12 percent from 5 percent.

The rates of Textiles including synthetic yarn, tents, woven fabrics, blankets, pile fabrics, have also been raised from 5 percent to 12 percent. Accessories like rugs, serviettes, tablecloths and tapestries have also seen their rates going up from 5 percent to 12 percent.

Beside this, footwear of any value has seen its rate raised from 5 percent (up to Rs 1,000/pair) to 12 percent.

Meanwhile, the Clothing manufacturers Association of India (CMAI) has been disappointed with this decision of the government.

According to them, this will impact the textiles industry as the industry is facing inflationary pressure with raw material prices, especially yarn, packing material, and freight, on the rise.

Also read:Meet 28-Years-Old Shantanu Naidu, A Young Man Who Gives Business Tips To Ratan Tata!

Also watch: