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Wedding market wary of GST rate impact on apparel
Hindustan Times
|December 05, 2024
An increase in the goods and services tax (GST) rate on certain readymade garments, currently being discussed by a ministerial panel, could be a dampener for the ongoing wedding season, textile manufacturers said.
According to estimates from the Clothing Manufacturers Association of India (CMAI), bridal wear accounts for 10-12% of the total clothing market, underscoring its significance.
A group of ministers (GoM) led by Bihar deputy chief minister Samrat Chaudhary as part of the GST rate rationalization exercise is discussing whether to increase the rate for readymade garments priced above ₹1,500 while reducing the tax on cheaper ones. But the central government on Tuesday distanced itself from the proposal in an indication that the Centre and the ministerial panel may not be on the same page on it yet.
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