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Relief for Consumers: Clothes Prices Unlikely to Increase after GST
June 14, 2017
Since the government is keeping the GST rates comparable to the current rates on the low-priced garments and various kinds of textiles, the new regime is expected to have no major impact on the pricing. While ready-made garments costing Rs. 1,000 or more will attract a 12% GST in comparison to the current 7% (5% VAT and 2% excise duty), the sellers will get to claim refunds on the tax paid through input tax credits (ITC), thus enabling them to pass the benefit to their customers.
Ashok G Rajani, Chairman, Apparel Export Promotion Council, said that the GST rates on garments are fair, and may in fact help in reducing the prices even further.
