Garment Industry is one such industry which has been booming at a fast pace. The growth in population and the boom in the fashion industry has led to the rise in the sale of clothes. It is not just limited to any particular brand or style. It has rather garnered such pace that international brands have also started taking up interest in the Indian market. With the increase in market presence the tax has also been an important factor. There are various ways in which GST on clothes has played an important role in the functioning of the industry.

What is the Garment Sector?

The garment sector comprises the entire  process from the production from raw materials to the final product delivery. Garments is one of the fastest growing sectors which has provided huge benefits to both the industry and the nation. The GST on clothes in India has also been an important factor in the growth of the industry. With the boom in the garments sector it has led to huge numbers of employment and financial stability. The financial stability has improved as it has provided secure employment.

How has the Garments sector performed?

The garments sector has gone through drastics changes. India was once the largest exporter of cotton goods to the international market. With time there emerged other competitors and the quality became the ruling factor. There have been variou factors that have also influenced this growth such as the labour population that are both directly and indirectly connected. The garment sector is the second largest employer in India. The Sector has is one of the oldest sectors in India and has evolved through various ways. The machines used, the method of production etc have all evolved to what we see in the modern times. The rates at which a product was made earliest and become irrelevant as thousands can be made everyday. The same design that was not possible to get before is not a thing of convenience and style. It has also enabled the rise in the fashion industry because of the demand of the international market. 

The Garment sector has been the worst hit due to the covid restrictions. There has been no social fathering and the lack of financial stability has led to the decrease in the shopping for newer clothes. It is at a time like this that there needs a reformation in the business structure. 

What is the GST Structure in Garments Structure?

The GST for the garments sector is divided into two sections. The first is the 5% GST which is levied on the product within the price range of below 1000 rupees. The other part is 12 % which is levied on products above the price range of 1000 rupees. It has thus become a topic of debate as the sellers want a single GST structure. The government has raised the idea of fixing the GST at 12% while the sellers want it to be set at 5%. If the bill to fix the rates at 12% goest through it will crumble the already broken garments industry. Rather than giving support it will make the burden heavier. 

Conclusion

The Garment industry has been hit with the worst case situation. With the slack of social gatherings there has been a decrease in the sale of garments. It has made it difficult for the sellers to survive as they have to pay their bills. They also need to buy raw materials and pay their labour force for the work done. Ths not selling much will impact the team heavily. It has thus been the request of the sellers to make the fixed gst at 5% for all garments no matter the price range.