Applying a standard goods and services tax (GST) of 12 percent on textiles, as proposed by the Center, could increase the prices of cheap clothing by 6 percent, dent demand, close 95,000 small units and result in 7- 10 lakh job losses, according to a survey conducted by the textile organization Clothing Manufacturers Association of India (CMAI). In contrast, a standard GST of 5 percent can increase demand for garments priced over ₹1,000 by about 0.5 percent, lower the price by about 5 percent and create additional jobs of about 30,000 to 40,000, the study finds.