GST Latest updates from 1 January 2022 on Clothes, textiles, and footwear
Clothing’s, textiles, and shoes are becoming more expensive due to the 5% to 12% increase in GST:
The increase was announced on November
18 by the Board of Indirect Taxes and Customs (CBIC). In this article we have
to discuss about the Clothing’s, textiles, and shoes are becoming more
expensive due to the 5% to 12% increase in GST.
The cost of
clothing and shoes is also likely to rise, as the central government has
introduced a uniform 12% GST rate from January 1 to 2022 to amend the reverse
duty structure. This is a scene where the tax on personal input is more than
the tax on the item ending. The increase was announced on November 18 by the
Board of Indirect Taxes and Customs (CBIC).
The GST rate
on textiles has been increased from 5% to 12% previously, the GST on less than
1,000 shoes was 5%, but now it is 12% for any price shoe. Similarly, clothing
will be taxed 12% in the same way, even those who were previously charged 5%. Woven
fabrics of silk, wool, cotton, heavy animal hair, flax, jute or other textile
bust fiber, and other vegetable textile fiber woven fabrics are now covered
under the item which will now be subject to 12% GST. The GST rate on synthetic
fiber yarn has been reduced to 12%.
Of course,
many of the components that were taxed at 5% are also being increased to 12%, a
move that has not gone well with many sectors of the industry. In a statement to the Union Finance
Minister Nirmala Sitharaman, the Retailers' Association of India said the
textile industry was shocked by the decision, calling it the second-largest
revenue producer after agriculture. "Clothes that are also in need of a
tax are taxed at 12% which is not fair," it said.
In a
statement, the RAI said that a 7% increase was proposed to solve the problem of
an inverted duty structure, which faced a small section in the textile price
chain. "Such a steady increase in the GST rate will have an adverse effect
on 85% of the industry and will try to reduce the problems facing the industry
by more than 15%," he said.
Kumar
Rajagopalan, CEO of the India Retailers Association, said: On the business
side, this will exacerbate the financial burden on already stressed sectors and
slow recovery, especially for small and medium-sized enterprises (SMEs), which
make up 90% of the industry, affecting working capital requirements. For
consumers, this will lead to an increase in clothing prices, which will have a
negative impact on consumption. For the government, in the long run, this could
result in many unorganized companies leaving the GST network."
Business Today also said the move would have
"serious implications" as the industry is already facing inflationary
pressures, the Association of Apparel Manufacturers of India. (Apparel
Manufacturers Association of India).
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Tags- GST Latest updates on Clothes, textiles and footwear, GST Latest updates 2022, GST Latest updates from 1st January 2022, GST Latest updates on Clothes, textiles and footwear from 1st January 2022
