Story perspectives

India Delays GST Hike: Textile Industry Urges Caution

1/3/2025

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Summary

Story summary

India's GST hike for apparel has been postponed until next year, igniting industry debates.
Proposed tax rates may rise from 12% to 18% for goods priced between 1,500 to 10,000 rupees, and from 28% to 35% for items over 10,000 rupees.
Industry leaders caution that increased taxes could drive businesses underground, risking job losses and harming small enterprises.
The textile sector, a key employer, stresses the importance of stakeholder consultations before tax changes.
While the government seeks to boost tax revenue and reduce evasion, experts warn this approach may have negative consequences.

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Story summary

India's GST hike for apparel has been postponed until next year, igniting industry debates.
Proposed tax rates may rise from 12% to 18% for goods priced between 1,500 to 10,000 rupees, and from 28% to 35% for items over 10,000 rupees.
Industry leaders caution that increased taxes could drive businesses underground, risking job losses and harming small enterprises.
The textile sector, a key employer, stresses the importance of stakeholder consultations before tax changes.
While the government seeks to boost tax revenue and reduce evasion, experts warn this approach may have negative consequences.