05/09/2025
🧵 My View on the New GST in Textile & Garment Industry
I am being deeply connected with the textile and garment industry, I wanted to share my thoughts on the new GST reforms announced recently.
This change is an important moment for our industry, and I believe it will impact everyone – from manufacturers and exporters to retailers and consumers.
🌸 What Has Changed in GST?
Garments up to ₹2,500 will now attract only 5% GST, making them more affordable for middle-class buyers.
Fiber, yarn, fabric, and garment stages are all aligned under a 5% GST, solving the long-standing issue of inverted duty structure.
Premium garments above ₹2,500 will now attract 18% GST, which may affect luxury and handcrafted segments.
Refund and compliance processes are simplified, which is a big relief for exporters.
✨ My View on the Impact
🔹 Good for Mass Market & Retailers
Lowering GST to 5% for garments under ₹2,500 is a big boost for the budget-friendly and festival shopping market. This will definitely increase sales in tier-2 and tier-3 cities, where people look for affordable fashion.
🔹 Exporters Will Benefit
Uniform GST on fiber and yarn reduces working capital pressure and helps exporters get faster refunds. This will make Indian garments more competitive globally.
🔹 Challenge for Premium Segment
The higher 18% GST on garments above ₹2,500 may hurt demand in handcrafted sarees, designer outfits, and traditional wear which already face higher costs. I personally feel that a uniform 5% GST across all garment categories would have been a better step for long-term growth.
🔹 Encouragement for MMF Sector
The Man-Made Fiber industry has always faced challenges due to higher taxes. With the GST alignment, it will get the push needed to expand and support the government’s vision of making India a global textile hub.
🧵 Final Thought
From my perspective at Sri RadhaKrishna Agencies, this GST reform is definitely a positive move – but only a half win. While it makes the mass market stronger and helps exporters, it puts pressure on the premium textile and garment segment.
If we want to see inclusive growth across all categories – from daily wear to luxury handcrafted fashion – we need to work towards a uniform GST rate that balances affordability, tradition, and sustainability.
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🙏 These are my views as someone closely working in the sourcing and garment trade. I’d love to hear what you think about these GST changes – will it help your business or affect your sales?
