Expressing concern over the government’s decision on increased GST rates for many apparel items from January 1, a prominent hosiery manufacturers’ association has said that it will impact the ordinary person and the Micro, Small and Medium Enterprises (MSMEs) sector.
The rate is changed to 12 per cent from the existing 5 per cent, which is going to raise the prices of apparel which costs below Rs 1,000, officials of the Federation of Hosiery Manufacturers Association of India (FOHMA) said.
This change in the GST rate will impact the weaker section of the sector. “What is more necessary is that over 85 per cent of India’s total apparel market is below the cost level of Rs 1,000,” they said.
“The FOHMA has made many requests to the administration and GST Council to defer the price hike to save the Indian hosiery and garments industry. But, our requests have not been considered, and it is extremely saddening,” the associations’ officials added.