AP Chambers Seeks Exemption Of Garment Sector From GST Hike

Vijayawada: Andhra Pradesh Chambers of Commerce and Industry Federation (AP Chambers) has appealed again to Union Finance Minister and Chairperson of the GST Council Nirmala Sitharaman to reconsider the proposed changes to GST rates on garments.

These changes include raising the GST from 12 per cent to 18 per cent on garments priced between Rs1,500 and Rs10,000 and imposing a 28 per cent GST on garments priced above Rs10,000. In its representation, AP Chambers president Potluri Bhaskara Rao said “the textile and garment sector in Andhra Pradesh is a key contributor to employment and the State’s economy.” The organisation highlighted that the proposed GST hike could severely impact this vital sector, which is already grappling with rising input costs, global market fluctuations, and reduced consumer spending. The tax increase is likely to raise garment prices, making them unaffordable for middle-income consumers and leading to a decline in demand, he said.

The majority of businesses in this sector are small and medium enterprises (SMEs) that operate on narrow profit margins. These businesses will face immense difficulty in absorbing the increased tax burden, potentially leading to closures, layoffs, and job losses, he pointed out.

AP Chambers has urged the GST Council to reconsider the proposed revisions to protect the interests of the textile and garment industry, which plays a vital role in job creation, industrial growth, and exports.

The Chambers expressed hope that the GST Council will prioritise the sustainability of this critical sector not increase the GST rates.