GST: More than 60% of citizens oppose Center’s decision to increase tax rate on clothing and footwear, poll finds

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About 61 percent of Indians are against the centre’s decision to increase the goods and services rate (GST) on clothing and footwear to 12 percent from 5 percent, a poll found on Friday.

According to the LocalCircles poll, 29 percent of citizens agreed with the GST rate hike, while 10 percent had no opinion. The majority of 61 percent of citizens have said “no” or are against the government’s proposal.

The survey received 9,268 responses from citizens located in 311 districts of India. 67 percent of those surveyed were men while 33 percent were women.

“One of the main issues cited by people in community discussions is the high inflation, the prices of vegetables and basic necessities that people buy. If GST rates are increased on clothing and footwear , this will put even more pressure on household budgets, ”LocalCircles said in a statement.

The Central Council of Indirect Taxes and Customs (CBIC) had notified the increase in the GST rate from 5% on fabrics and clothing to 12% from January 2022. In addition, the GST on clothing of any value was increased to 12 percent. Previously the GST was 5% on the sale value up to Rs 1,000 per piece.

The changes made will increase the prices of all fabrics and clothing, the industry body said in a statement. The increase was based on recommendations from the GST Council.

However, expressing concern over the Center’s notification of GST rates for several items of clothing starting next January 1, a major hosiery-makers association called for its postponement, saying it would have an impact on the man from the hosiery. common and those of the MSME sector.

The proposed change will dramatically increase the prices of clothes which now cost less than Rs 1,000, officials from the Indian Federation of Hosiery Manufacturers Association (FOHMA) said.

In addition, the Clothing Manufacturers Association of India or CMAI has also expressed “deep disappointment” at the GST rate hike.

“CMAI, along with trade associations and bodies across India have vigorously called on the government and the GST Council not to implement this change, and it is indeed extremely disappointing that the Council has chosen not to implement this change. ignore their call, ”Rajesh Masand, chairman, CMAI said in the statement.

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