The Cloth Manufacturers Association of India (CMAI) has appealed to the government to levy only 5% Goods and Services Tax (GST) for garments worth more than ₹2,500.
A press release from the Association said there are continuous reports that garments above ₹2,500 are likely to be taxed at 18%, from the current level of 12%. If the GST Council does in fact keep ₹2,500 as the cut-off level for the 5% slab, and charge all products above this level at 18%, it will be a blow to the mid-income consumers and garment manufacturers in the organised sector, it said.
These are sections of the industry that manufacture products that are more expensive only because the raw materials used are expensive. For instance, the entire range of woollen garments that are an essential clothing in the north, north east, and eastern States, are priced between ₹3,500 and ₹7,000. These garments cannot be in the 18% slab.
Similarly, even the mid-income families spend ₹10,000 to ₹15,000 for each wedding cloth. These should not be in the 18% slab, the association said.
The Industry, which is in the midst of an unprecedented crisis with the U.S. Tariff wars, requires a strong, resilient, and vibrant domestic sector. Hence, the government should have the entire textile and apparel sector in the 5% GST slab, it said.
Published – September 02, 2025 10:18 pm IST
