The South India Garments Association (SIGA) has urged the Union Government to reconsider the hike in Goods and Services Tax (GST) on garments warning that the increase from 12% to 18% will severely impact middle-class families and the apparel sector.
In a memorandum to Prime Minister Narendra Modi, SIGA president Anurag Singhla welcomed GST reforms but expressed "deep concern' over the sharp jump in rates.
He pointed out the disparity between garments priced below Rs. 2,500, which attract 5% GST, and those above Rs.2,500, taxed at 18%. "This 13% gap directly burdens the common man.
Highlighting the industry's significance as one of India's largest employment generators, Singhla noted that the sector provides livelihoods to millions, especially women and rural workers.
He cautioned that the GST hike would worsen challenges like rising material costs, global competition, and weakening consumer demand.
Supporting the appeal former SIGA president Kundan Jain said garments above Rs.2500 are not luxuries but necessities. He urged the Union Finance Minister and the 'GST Council' to reduce the rate to 5%, arguing it would boost industry growth and ultimately generate higher revenue for the government.
CREDITS: The press-release forwarded by The South India Garments Association (SIGA) and has not been reviewed and edited by us.
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