Mumbai, November 20: The Indian government has increased the Goods and Service Tax (GST) on clothes, textiles, and footwear from 5% to 12% with effect from January 2022. The Central Board of Indirect Taxes and Customs (CBIC) announced this update on November 18. The hike was reportedly suggested by the GST Council.

Clothes, footwear may get costlier due to this hike in GST. The GST rate on Fabrics, apparel has been raised to 12% from 5% apiece priced at Rs 1000, effective from January 1.  GST Rates Reduced on Certain Medicines, Biodiesel, Nirmala Sitharaman Says 'Council Feels Not The Time to Bring Petrol, Diesel Under GST'; Check Revised Rates.

Reportedly, The Clothing Manufacturers Association of India (CMAI) has expressed displeasure with the decision to hike GST. This hike in GST will have a significant impact on the industry because the industry is facing inflationary headwinds, with raw material prices, CMAI added. However, GST rates on certain synthetic fibers and yarn have been lowered to 12% from 18%, making rates uniform.

(The above story first appeared on LatestLY on Nov 20, 2021 01:09 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).