CMAI Urges Uniform 5% GST for All Textile Segments

The Clothing Manufacturers Association of India (CMAI) has welcomed the government’s move to simplify GST slabs into three categories of 5%, 18%, and 28%, praising it as a step that will boost consumer affordability and ease of doing business. However, the association has raised concerns about the lack of clarity on whether the entire textile sector, especially garments, will be uniformly placed under the 5% slab or only items within certain price limits.

CMAI has long advocated for a single 5% GST across textiles, emphasizing that clothing is a mass-consumption essential and should not face higher tax rates. Media reports suggesting that garments above Rs. 2,500 may attract 18% GST have alarmed the industry.

CMAI President Santosh Katariya cautioned that “Keeping textiles products along with products like electronics, mobile phones etc. under the same GST slab would not be consistent from an overall economic rationale and consumer perspective.” He stressed that raising GST could drive the industry back into informal transactions, encourage under-invoicing, and lower product quality.

Vice President Ankur Gadia highlighted that woollen clothing, wedding attire, and sustainable fashion naturally cost more due to materials and production processes. “Woollen clothes are part of essential consumption in many parts of India… it would be unfair to tax them at a higher rate merely because it is priced at Rs. 3,500 or 5,000.” He also noted that wedding garments, often priced at Rs. 10,000 or more, should not be penalized by higher taxation.

Chief Mentor Rahul Mehta added that traditional handloom and embroidered garments, already priced higher due to craftsmanship, would be unfairly burdened with higher GST.

With textile exports already under strain from global tariff disputes, CMAI stressed the need to strengthen the domestic market by keeping all textile products under the 5% GST slab. The association listed six key reasons: textiles are mass-consumption items, price-led tax divisions cause hardship, Indian traditional wear would be hurt, the sector is the second-largest employer, higher GST risks reviving informal trade, and the industry is already in crisis.

CMAI urged the GST Council to safeguard the sector by applying a uniform 5% GST across the textile value chain.