AP Chambers urges GST Council not to Increase Tax on Garments:

AP Chambers urges GST Council not to Increase Tax on Garments The AP Chambers of Commerce and Industry Federation (AP Chambers) wrote to Union Finance Minister and GST Council Chairperson Nirmala Sitharaman, urging her to reconsider the proposed increase in GST on garments priced between Rs.1,500 and Rs.10,000 from 12% to 18%, as well as the imposition of 28% GST on garments priced above Rs.10,000. Potluri Bhaskar Rao, president of the AP Chambers, noted that the textile and garment sector is a significant provider of employment and the state's economy. The GST hike would have a significant impact on this crucial sector, which was already struggling with rising input costs, worldwide market changes, and decreased consumer spending. According to the letter, the tax rise would result in a significant increase in garment prices, making them inaccessible for middle-income consumers and eventually leading to a drop in demand. Furthermore, the Small and Medium Enterprises (SMEs), which account for the vast majority of enterprises in the sector and are running on razor-thin profit margins in the current economic climate, will have a tough time absorbing the tax burden. The letter stated, the SMEs may finally be forced to close down the businesses they own.