At the next 55th GST Council meeting, the Punjab Textile Merchant Association has requested that Punjab Finance Minister Harpal Singh Cheema counter-urged changes to the Goods and Services Tax (GST) on clothing.
In a letter to Cheema, the association members expressed their concerns over the increase in GST rates. The ideas include increasing the GST from 12 per cent to 18 per cent on clothing priced between Rs 1,500 and Rs 10,000 and imposing a 28 per cent GST on clothing priced over Rs 10,000. The measures that will affect the currently stressed apparel industry are already communicated to the dealers.
The association argued that raising the GST to 18 per cent on mid-range clothing would make items more affordable for middle-class buyers, which would reduce demand and impede sales. The premium market will decline as a result of the proposed 28 per cent GST on luxury clothing, deterring purchases and causing financial difficulties for enterprises.
Small and medium-sized businesses (SMEs), who operate on smaller profit margins, are essential to the apparel sector. According to the association members, the enterprises would find it difficult to handle the increased tax burden, which led to closures and significant job losses.
The traders requested that FM Cheema support industry needs and make sure that policies promote growth rather than exacerbate existing issues. They emphasised how the industry’s contribution to Punjab’s economy and job development may be harmed by the proposed increases in the Goods and Services Tax (GST).
