The Kerala Textile and Garments Dealers Association have urged the Finance Minister to reconsider the revised 18 per cent GST rates, saying that its impact on the apparel market is not small. As per the new rates, the limit of Rs. 1000 has been increased to Rs. 2500 and 18 per cent tax has been imposed on sales above that.
The increase in the limit from Rs. 1000 to Rs. 2500 in the context of inflation in the last 8 years is not at all a relief. It is estimated that the average consumer spends around Rs. 2500 on clothes during the festive season and imposing 18 per cent tax will hit consumers and traders hard.
Clothing traders in Kerala and Tamil Nadu are already reeling under a severe crisis. It will be difficult for individual firms, especially those marketing wedding wear and traditional wears. At a time when the sector is waiting reduced GST rates, such a hike cast a shadow on the apparel market.
T. S. Pattabhiraman, President of The Kerala Textile and Garment Dealers Association requested the government to rethink its decision and introduce a uniform rate.
At a time when consumers are dependent on foreign markets, the Indian apparel market is facing huge challenges. He also urged the government to bring down the rates as the apparel sector, which is providing employment to lakhs, is struggling for survival.
