GST hike on apparel above ₹2,500 to hit demand: Industry

The increase in GST on apparels exceeding ₹2,500 to 18% from 12% will impact the offtake of these items in the upcoming festive and wedding season, according to the industry.

The Clothing Manufacturers Association of India (CMAI) called the decision a big blow to the middle class and the organised sector of garment manufacturers, who it said are already impacted by the tariff war.

Almost the entire range of woollen garments, which are essential clothing for the middle class in the North, North-East, and East India, are currently priced between Rs 3,500 to Rs 7,000, said Rahul Mehta, chief mentor at the CMAI.


"Putting such garments in the 18% slab will mean asking middle-class Indians not to wear woollen clothes during the winters," he said.