The govt's decision to impose 18% GST on apparel priced above Rs 2,500 has not gone down well with textile merchants, who described it as a regressive move. Saying that the move would harm "honest, organised retailers", they expressed concern about its repercussions.
Punjab Textile Merchants Association has written to the finance minister and chairperson, GST Council, Nirmala Sitharam to restore uniform 5% GST on all wedding and festive apparel, across price points, removing the Rs 2,500 cap.
Increasing GST on apparel above Rs 2,500 to 18 percent has imposed a burden on lower and middle income families, they stated."Weddings and festivals are essential cultural occasions where even basic attire often costs above Rs 2,500 due to fabric, craftsmanship, and artisan work.
Treating such attire at ‘luxury' disproportionately impacts ordinary households," the memorandum stated.
While GST on fabrics will be taxed at 5%, stitched garments in the higher price bracket will now be priced more than three times that rate.
Traders argue that such a differential system is bound to confuse consumers and give an unfair advantage to unorganised sellers who often operate outside the tax net.
"We have always supported GST as a reform for transparency and ease of doing business," said Sonu Nilibar, president, Punjab Textile Merchants Association.
CREDITS: The press-release forwarded by Punjab Readymade Garment Association (RETAIL) and has not been reviewed and edited by us
CONTACT US 
