The Karnataka Household and Garment Association (KHAGA) has urged Nirmala Sitharaman, Union Finance Minister to abandon the idea of revising Goods and Services Tax (GST) rates for the apparel and textile industry.
The revision would have a profound impact on the industry’s pricing, production, and also demand, KHAGA emphasized. Additionally, it would result in possible job losses in the industry, intensifying the current financial strain experienced by it, the association added.
Prakash Bhojani, President, KHAGA states, if categorized under luxury tax, ethnic garments, typically bought for weddings and celebrations, will become unaffordable for many. This could reduce consumption during cultural and festive occasions, ultimately slowing down the economy, he adds.
Reforming the GST rates could drive firms and consumers to unofficial marketplaces resulting in sufferings for respectable retailers while illegitimate merchants will continue to profit from this change, he adds further.
