Proposed GST Rate Hike: The Group of Ministers (GoM) on GST rate rationalisation has proposed raising the tax rate on sin goods, such as aerated beverages, cigarettes, tobacco, and related products, from 28% to 35%. This move aims to promote public health and enhance government revenue.
Apparel Industry Concerns: The apparel industry has expressed concerns over the proposed GST hike. Garments priced between ₹1,500 and ₹10,000 could see an 18% tax, while those above ₹10,000 may face a 28% tax. The Clothing Manufacturers Association of India (CMAI) warns this could lead to job losses and market disruptions.
Economic Impact: The Confederation of Indian Textile Industry (CITI) has also raised concerns about the proposed GST rate revisions on ready-made garments, warning of potential job losses and economic slowdown.
