Hosiery and garments industry urge government not to raise GST rates
Associations and industry bodies representing the hosiery and garments units decried the government's proposed move to raise the basic GST rates by five per cent from January 2022. In order to save the industry, the associations urged the government not to raise the goods and services tax (GST) rates.
The president of the Federation of Hosiery Manufacturers Association of India, K B Agarwala said that the move will affect the hosiery and garments industry. He said majority of the players in the industry will be impacted due to the inverted duty structure of 15 per cent which will raise GST rates. He stated that the industry is already hit by the pandemic as sales of garments and hosiery products are still at 65 per cent of the pre-COVID levels.
Agarwala further said most indicators have hinted that recovery will start from the end of 2022 and any rise in taxes will be disastrous for the industry. He added that the players in the industry are hit by the high requirement of working capital, the credit cycle of which has been extended due to the pandemic.
