The Clothing Manufacturers Association of India (CMAI) has welcomed the recent decision of Hon. Prime Minister Narendra Modi to amend the GST structure by simplifying the slabs to three categories – 5%, 18%, and 28%. CMAI acknowledged that this move would be a milestone in reducing product costs for consumers and in strengthening the ease of doing business in India. However, the association expressed concern about whether the entire textile sector, particularly garments, will be included under the 5% GST bracket or if only products below a specific price range would qualify. CMAI has consistently advocated a single, uniform GST rate of 5% for all textiles, arguing that garments and fabrics are mass-consumption essentials and have historically been taxed at the lowest rate. Media reports suggesting a possible 18% GST rate on garments priced above ₹2,500 have raised alarm in the industry. CMAI President Santosh Katariya emphasized that equating textiles with luxury products like electronics or mobile phones under the same slab is economically inconsistent. He warned that such a move could push parts of the industry back into the informal sector, reviving under-invoicing and reduced quality standards to remain within lower price points. Ankur Gadia, Vice President of CMAI, pointed out that woolens, wedding wear, and sustainable fashion items inherently cost more due to their raw materials and processes. Taxing them at higher rates would unfairly penalize essential and traditional products. He stressed that woolens are indispensable in northern and northeastern India, while wedding attire holds deep cultural and social importance. Rahul Mehta, Chief Mentor of CMAI, added that handloom and embroidered garments, already more expensive due to their artisanal nature, would be disproportionately impacted by higher taxation. “Should we impose a higher tax on our own traditional clothing?” he questioned. CMAI highlighted that the ongoing “tariff wars” have already destabilized textile exports, putting additional pressure on domestic markets. A higher GST slab could harm the industry further, risking job losses and reversing progress toward formalization. Summarizing its stance, CMAI urged the government to keep the entire textile value chain under the 5% GST bracket, citing key reasons:

• Textiles are mass-consumption essentials.
• Price-based GST slabs will unfairly exclude key categories like woolens and celebratory wear.
• Traditional and artisanal products will suffer under higher taxation.
• The sector is the second-largest employer after agriculture and should be safeguarded.
• High taxation risks pushing the industry back into informality.
• Export challenges require a stronger domestic sector for stability. CMAI has called upon the GST Council to support the sector by retaining the entire textile industry under the uniform 5% GST slab.