Govt Hikes GST Rates On Textiles, Footwear From 5% To 12%

Goods and services tax (GST) was increased to 12% from 5% by the government on finished products such as apparel, textiles, and footwear. The notification was issued by the Central Board of Indirect Taxes and Customs (CBIC) on November 18. However, the Clothing Manufacturers Association of India (CMAI) expressed its disappointment with the decision. Reportedly, apparel cost is expected to increase by 15-20% without the hike in GST rates.