GST Reforms Must Protect Apparel Sector: CMAI’s Rahul Mehta

The Clothing Manufacturers Association of India (CMAI) has urged the government to exercise caution in implementing the proposed Goods and Services Tax (GST) reforms, warning that poorly executed changes could harm the apparel sector.

Rahul Mehta, Chief Mentor of CMAI, said that while reducing the number of slabs and making mass-consumption products cheaper are “commendable and long overdue objectives,” the real challenge lies in execution.

He stressed that if the current 12% slab is scrapped and apparel priced above Rs 1,000 is moved into the 18% category, “it would be disastrous” for the industry. Instead, Mehta reiterated the demand to bring the entire textile value chain, including raw materials, under the 5% slab to make clothing more affordable and resolve the inverted duty structure.

Mehta also warned against raising the Rs 1,000 threshold, saying it could trigger under-invoicing, lower quality standards, and push businesses into the grey market.