The planned GST hike on garments priced less than Rs 1,000 from January 1, 2022 is likely to increase prices of 80 per cent final products, opine experts. The government had decided to increase the Good and Services Tax (GST) rate on readymade garments and fabrics in September this year. The planned hike is likely to affect almost 85 per cent of the garment market in India, as per reports. It will create a greater stress on the working capital requirements of the industry, especially the Micro, Small and Medium Enterprises.
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