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Mumbai (Maharashtra) [India], September 29: The Clothing Manufacturers Association of India (CMAI), one of the largest and oldest Association representing the interests of the Domestic Garment Industry, expressed its deep sense of disappointment and anguish at the recent announcements from the GST Council indicating that with a view to address the issue of Inverted Duty Structure in the Textile Industry, it has been decided to change the GST rates applicable on Fabrics and Garments with effect from 1st January.
Although no formal communication has been received, reports indicate that the current applicable rate of 5% on all Fabrics and Garments up to the price of Rs.1,000, will be increased to 12%.
It is indeed disturbing that to correct an issue faced by a small section of the entire Industry, the Council is considering increasing the prices of nearly 85% of the final products to the Consumers.
Mr. Rajesh Masand, President – CMAI urges the Government and the GST Council to consider these crucial points:
Mr. Rahul Mehta, Chief Mentor of CMAI, strongly urges the Central and State Governments and GST Council to review their decision and find alternate solutions to address the Inverted Duty Structure problem. CMAI has in the past recommended a flat 5% GST across the entire Value Chain – which will resolve the Inverted Duty Structure, will boost consumption and hence production and & Employment, and will cost the Government a negligible amount on revenue.
In the absence of such a solution, CMAI urges the authorities to maintain the current status quo.
For further information: www.cmai.in
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