The Clothing Manufacturers Association of India (CMAI) has welcomed the government’s move to simplify GST into three slabs of 5%, 18%, and 28%. While recognizing the reform as a positive step toward reducing tax complexities, CMAI insists that the textile sector must be uniformly taxed at 5%. The association warns that placing garments above ₹2,500 in the 18% bracket could destabilize the industry, which already faces challenges from shrinking exports.
CMAI President Santosh Katariya emphasized that apparel cannot be treated like luxury items such as electronics. An increase in GST, he cautioned, may revive informal trade practices, encourage tax evasion, and hurt product quality. Vice President Ankur Gadia added that essential categories like woolens, wedding wear, and sustainable fashion would be unfairly burdened, while Chief Mentor Rahul Mehta highlighted the negative impact on handloom and artisanal garments.
With the textile industry being the country’s second-largest employer after agriculture, CMAI argues that higher taxes would harm livelihoods, reduce demand, and undermine domestic stability. The association presented six key reasons for retaining a uniform 5% GST: textiles’ essential role, risk of penalizing necessities, setbacks to handlooms, potential job losses, resurgence of informal trade, and the need to shield the sector amid export pressures.
Representing over 5,000 members and 35,000 retailers, CMAI has called on the GST Council to preserve the 5% slab across the value chain. Alongside advocacy, the body continues to champion sustainability through initiatives like the 2019 SU.RE program, reinforcing its commitment to a resilient future for Indian textiles.
