Press Release Punjab Readymade Garments Association urges PM Modi to review 18% GST rate on garments priced above ₹2500 7th September 2025 - A special meeting of the Punjab Readymade Garments Association (Retail) was convened, attended by Chairman Naresh Singla, board members, and other members. The meeting was presided over by President Mantar Singh Makkar.
In the meeting, it was unanimously decided to write a letter to Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman requesting a review of the GST rate on readymade garments.
The Association confirmed that the letter has already been sent to the Prime Minister's Office and the Ministry of Finance via email.
The letter stated that while reducing GST to 5% on garments priced up to ₹2500 is a welcome step, imposing 18% GST on readymade garments priced above ₹2500 is putting a heavy burden on middle-class families.
President Mantar Singh Makkar emphasized that sweaters, jackets, coats, and other woollen garments, as well as clothing purchased during festivals and weddings, are generally priced above ₹2500. This is causing additional financial pressure on common people.
He also pointed out that such a high tax rate not only makes essential garments more expensive but also encourages unbilled transactions, which could undermine the transparency of the GST system.
The Association has appealed to the Prime Minister and the Finance Minister (FM) to either fix GST at 5% on all garments irrespective of price or increase the current exemption limit from ₹2500 to at least ₹10,000, so that middle-class consumers and small traders can get relief.
CREDITS: The press-release forwarded by Punjab Readymade Garment Association (RETAIL) and has not been reviewed and edited by us.
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