GST Council advise to increase GST rates on clothes and footwear

Home » News » GST Council advise to increase GST rates on clothes and footwear

The center plans to raise Goods and Services Tax on clothes and footwear. Further, it raised GST around Rs. 1,000. The updated GST rates on clothes and footwear raised to 12% from 5%. In addition, Synthetic wool and artificial wool may also be available at high tax rates. On the other hand, wool yarn, silk, and cotton clothes stood available at old rates.

According to the source, the main of increasing the tax on clothes remains to correct the inverted duty structure on textiles and leather goods.

Further, the GST council recommended updated tax rates on clothes and footwear.

Nevertheless, the traders have made portrayals against new tax rates. As a result, the move impact a maximum of people in the country.


Furthermore, the small trader’s leader in India said that the GST council has does not meet the traders and takes its own decisions. Further, the council does not have any touch with the ground realities of trade.

How GST will stand 

How GST Stands Today - Fibre2Fashion

A survey stated as around 85% of people in India bought clothes and shoes below Rs. 1,000. In terms of percentage, they buy at 5% of Goods and Services Tax rates. Further, Several small manufacturers, artisans, and other regions will suffer as a result of the decision, CAIT said.

We also knew that the textiles sector remains the second-largest revenue producer in India. On the other hand, the agricultural second stood in the first place. But, due to the pandemic effect, a high amount of employees get affected in the textiles sector.


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