A move to boost affordability, revive demand, and strengthen India’s fashion supply chain Delhi NCR, September 4, 2025: CTA Apparels has welcomed the Government of India’s decision to reduce Goods & Services Tax (GST) rates on select textile and apparel categories. The reforms include rectifying the long-standing GST inversion in the man-made fibre (MMF) value chain by aligning GST on MMF fibre and yarn at 5%, down from 18% and 12% respectively.
“This is a timely and forward-looking decision,” said Dr. Mukesh Kansal, Chairman, CTA Apparels. “The reduction in GST and correction of the MMF value chain will ease industry costs, boost demand, and make Indian textiles more competitive globally. It will also allow manufacturers to reinvest in technology, sustainability, and skill development. We applaud this step and remain committed to passing the benefits to our customers and partners.”
The revised GST structure is expected to:
• Enhance price competitiveness in domestic and export markets
• Improve cash flows for MSMEs and integrated players
• Support employment generation across the sector
