The Clothing Manufacturers Association of India (CMAI) has welcomed the recent changes in GST rates for the textile industry. The government has addressed two long-standing demands—eliminating the Inverted Duty Structure by ensuring a uniform 5% GST across the value chain from fibre onward, and implementing a fiber-neutral policy that aligns the MMF and cotton chains.
Additionally, the increase in the 5% GST threshold from garments priced up to ₹1,000 to ₹2,500 has been termed a highly positive step for the industry.
However, CMAI highlighted a persisting concern: garments priced above ₹2,500 remain outside the 5% GST bracket. The association has urged the GST Council to either bring all garments under 5% GST or set a more realistic threshold.
CMAI emphasized that garments priced above ₹2,500 are not exclusive to luxury consumers. These include woollens, occasion wear, Indian traditional attire, handlooms, and embroidered pieces crafted by artisans and weavers—all widely purchased by the middle class and common consumers. The current tax structure risks making such essential and cultural apparel less affordable.
CMAI strongly appealed to the GST Council and the Government to reconsider this anomaly to ensure fairness and support for both the industry and consumers.
