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GST Council took the decision! Now Clothes and shoes are going to be expensive, know latest update

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Will be loose again on the pockets of common people. From January 1, 2022, shoes and clothes can become expensive. The GST Council took this decision in the meeting. Let us know how this will affect you.



The general public is going to get another shock of inflation. If you are also fond of buying and wearing clothes and shoes, then read this news. In the first month of next year, you may have to face another hit of inflation. Actually, from January 1, 2022, the prices of clothes and shoes may increase.

The GST Council has accepted the long standing demand for changes in the inverted duty structure of the clothing and footwear industry. The GST Council has said that the new duty structure will be implemented from January 1, 2022. It is believed that after this increase, clothes and shoes will become expensive.

Long time demand

People associated with the textile and shoe business had been demanding a change in this structure for a long time. He said that there is 12 per cent GST on raw materials for making shoes, while the GST on finished products is only 5%. The duty paid on raw material should be refunded to make up for this loss. Subsequently, in the meeting of the GST Council, it was decided to change the inverted duty structure of the clothing and footwear industry.


Prices will increase from January 1

It is worth noting that at present, the GST on clothing and footwear products ranges from 5% to 18 percent. After this decision of the government, the prices of clothes will increase from January. Actually, after increasing the GST, the prices of clothes and shoes will increase, which will have a direct impact on the pocket of the common man.

Because of this the prices will increase

At present, inputs in the MMF fabric segment (fibre and yarn) attract GST at the rate of 18% and 12%, while the rate of GST on MMF fabric is 5 per cent and for finished goods apparel at 5 per cent and 12 per cent. Let us tell you that the GST on inputs is higher than the output and that is why the effective rate of taxation of MMF fabrics and clothing increases and violates the principle of fiber neutrality.

Troubled by this inflation, business men yarn and fabrics manufacturers have been demanding a change in the inverted duty structure of the clothing and footwear industry for a long time. Therefore, in the name of resolving their problem, the government has increased the tax on garments instead of reducing the GST on manmade yarn-fabrics to 5%. Because of this, clothes and shoes will become more expensive.


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