Clothing Manufacturers Association of India (CMAI), the premier apparel body, in association with Tata Consultancy Services (TCS), has developed software to alert garment manufacturers about GST (Goods and Services Tax) compliance.

The unique software is being launched for the betterment of textile manufacturers at a minimal cost. From cotton traders to ginners and fabric manufacturers, anyone found non-compliant with GST will be identified through this software. The best part of this software is that it identifies the stage of non-compliance and sends automated reminders for tax compliance.

A garment manufacturer knows which vendor in the value chain has not paid the tax and hence the garment manufacturer can guide the vendor to pay their tax. Priced at Rs 18,000 for the initial six months, the software has a unique feature for highlighting the stage of compliance. The software automatically sends reminders to a vendor or a supplier who has not paid a tax at any stage in the textile value chain.

The impact of the 12 per cent tax on readymade garments above the Rs 1000 mark is not going to be significant. The rates will remain static in the lower price category of garments, with an increase of a per cent or two in the higher category.