THE JHARKHAND STORY NETWORK
Jamshedpur, Sept 26: The Confederation of All India Traders (CAIT) has urged the Union Government to bring reforms in the Goods and Services Tax (GST) structure for the textile sector, recommending an increase in the GST threshold for garments and a simplified slab rate to ease the burden on traders and consumers.
CAIT National Joint General Secretary Suresh Sonthalia, in a letter to Finance Minister Nirmala Sitharaman, described the next-generation GST reforms as among the most revolutionary tax measures in independent India.
He said such reforms would empower small businesses, enhance consumer confidence, and accelerate the nation’s journey towards becoming a $10 trillion economy.
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As part of the outreach, CAIT members, accompanied by the region’s Member of Parliament Bidyut Baran Mahto, visited markets to gauge consumer opinion on the recent GST amendments. While traders and buyers expressed happiness over the reforms, many in the textile sector also voiced concerns about the complexities of the current slab system.
At present, garments priced up to ₹2,500 attract 5% GST, while those priced above ₹2,500 are taxed at 18%. According to CAIT, this dual-structure is creating practical challenges for both consumers and small traders, especially those serving middle-class buyers.
The textile sector, being a traditional and employment-generating industry, is particularly impacted by the burden of navigating multiple tax slabs on fabrics, yarn, and finished garments.
To address these concerns, CAIT has recommended raising the GST threshold from ₹2,500 to ₹5,000 and introducing a uniform 12% GST rate on garments above ₹5,000.
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The organization believes this change would not only provide relief to middle-class consumers but also strengthen the textile industry, increase government revenue by expanding the tax base, and reduce compliance difficulties for small shopkeepers.
Sonthalia requested that these suggestions be considered seriously and included in the upcoming Union Budget or deliberations of the GST Council, noting that a streamlined system would encourage trade, improve ease of doing business, and strengthen one of India’s most vital industries.
