
Around 61 per cent Indians are against Centre's decision to hike Goods and Services (GST) rate on apparel and footwear to 12 per cent from 5 per cent, showed a survey on Friday.
According to the LocalCircles survey, 29 per cent of citizens agreed with the GST rate hike, while 10 per cent did not have an opinion. The majority of 61 per cent of citizens said 'No" or are against the government’s proposal.
The survey received 9,268 responses from citizens located in 311 districts of India. 67 per cent of the respondents were men while 33 per cent were women.
"One of the top issues quoted by people in community discussions is the high inflation, prices of vegetables and FMCG essential goods that people buy. If GST rates are increased on apparel and footwear it will further put a strain on the household budgets," LocalCircles said in a statement.
The Central Board of Indirect Taxes and Customs (CBIC) had notified raising GST rate to 12 per cent from 5 per cent on fabrics, apparel from January 2022. Also, GST on apparel of any value has been increased to 12 per cent. Earlier, GST was 5 per cent for sale value up to Rs 1,000 per piece.
The changes effected will increase prices of all fabrics and garments, the industry body said in a statement. The hike was based on the recommendations of the GST Council.
However, expressing concern over the Centre’s GST rates notification for several apparel items from January 1 next, a prominent hosiery manufacturers’ association has sought its deferment, saying it will impact the common man and those in the MSME sector.
The proposed change is going to significantly increase the prices of apparel now costing below Rs 1,000, officials of the Federation of Hosiery Manufacturers Association of India (FOHMA) said.
Further, Clothing Manufacturers Association of India or CMAI also expressed “deep disappointment" over the GST rate hike.
“CMAI, along with associations and trade bodies from all over India have been vigorously representing to the government and GST Council not to implement this change, and it is indeed extremely disappointing that the Council has chosen not to heed their plea," Rajesh Masand, president, CMAI said in the statement.