Highlights

  • GST on apparel, textiles and footwear to be increased from 5% to 12% effective January 1
  • The GST hike was notified by the Central Board of Indirect Taxes and Customs (CBIC) on November 18
  • Bad news for manufacturers too

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Get ready to pay more for shoes and clothes; GST rate more than doubles

Clothes, footwear to get costlier from January 2022 as GST increases from 5% to 12%

Get ready to pay more for shoes and clothes; GST rate more than doubles

It is going to cost you a lot more to suit up and step out as the tax rate on your shoes and clothes has just been more than doubled.

From January 2022, the GST rate on fabrics will be raised to 12 percent from 5 percent, and the GST rate on garments of any value has been raised to 12 percent, compared to the previous rate of 5 percent on items priced up to Rs 1,000.

Also Read: Taxing times: GST rate likely to be raised, categories to be reduced: reports

This is bad news not just for shoppers but also manufacturers who are already facing cost pressures with soaring prices of cotton, yarn and transport as well.

The Clothing Manufacturers Association of India (CMAI) said it was “deeply disappointed" at the government’s decision to hike GST rates on apparel.

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