Garment Trade Associations urge GoM to abandon GST rate modification proposal
The Clothing Manufacturers Association of India (CMAI), along with 14 prominent garment trade associations from across India, came together under the banner of “One Industry, One Voice.”
In a landmark meeting, they passed a unanimous resolution urging the Group of Ministers (GoM) to abandon its proposal to modify Goods and Services Tax (GST) rates in the garment sector and retain the existing structure of 5 per cent and 12 per cent.
According to CMAI, this collaborative effort marked the first time so many leading associations joined forces to address critical issues facing the industry.
The meeting also saw the development of five key policy recommendations aimed at fostering sustainable growth, securing long-term stability, and addressing pressing challenges within the garment sector.
The first and foremost recommendation is to abandon the proposed GST rate revision. The associations emphasized the potential negative consequences of such changes, including disruptions in manufacturing, pricing instability, and weakened consumer demand.
They warned that these revisions could push businesses towards informal channels, harm affordability, and destabilize employment, particularly in festive and wedding-related apparel segments.
Another significant proposal is the introduction of a tailored Production Linked Incentive (PLI) scheme specifically for the garment sector.
