The excise law at present discriminates between branded and unbranded garments. By merely attaching a label, a garment becomes branded and falls under the purview of excise duty, affecting garment industry adversely. Most of the women's and men's traditional wear do not carry any label, while a section of manufacturers who are involved in manufacturing men’s casual and formal wear for mass market sale have no brand name/label and are out of the purview of excise duty. This discrimination is causing unwanted unhealthy business practices because there is no specific definition of brand relating to garments, said the association in the letter.
SIGA adds that the basis of GST is 'one tax one nation' and is devised for lowering rate of tax across the nation. Current rate of excise duty is at 2 per cent (with an abatement of 40 per cent) and the VAT rates are 5 per cent to 5.5 per cent in most of the states.
The garment industry provides maximum employment opportunities especially to women, un-educated, poor common man, backward and under privileged community of the society. All the sectors such as manufacturing, designing, marketing, logistics, packaging as well as retailing provide maximum jobs and there is a huge scope for further development in the country, according to SIGA.
However, operational costs and high rentals are making it difficult for medium and small entrepreneurs in manufacturing or retailing or related industry of packaging or logistics. Simultaneously, traditionally run tailoring shops are vanishing due to heavy running costs and higher wages of work force. Hence, it is becoming challenging for garment industry to develop further keeping pace with changing time and trends. The garment industry has become one of the biggest support system for the textile industry.
Garment Industry is a complex and sensitive industry governed with many complications in manufacturing with very high rate of rejection due to many reasons as well as fashion cycle, also run by climates, regional traditional wears, etc. In such a scenario, tax rates play a major role to sustain garment trade and industry. (KD)
Fibre2Fashion News Desk – India
Textiles | On 22nd Apr 2021
The international NGO Environmental Coalition on Standards (ECOS) has ...
Apparel/Garments | On 22nd Apr 2021
Italian luxury goods company Salvatore Ferragamo has launched...
Canada-based Lululemon Athletica has announced 2 new initiatives that ...
Textile Industry Head honchos
Social media critical in regeneration of businesses
Farmers who produce seeds earn 50 per cent more
Estimate loss of $8-$10 billion in turnover
Laxmikant Rathi
With more than 60 years of experience in the textile industry, Ideal...
Nick Isles
The Condé Nast College of Fashion & Design or CNC as it is known as,...
Amanda Cioletti
The entertainment/character segment lead as the largest sector for the...
Giulio Cesareo Directa Plus
UK-based Directa Plus is one of the largest producers and suppliers...
Suresh Patel Non Woven Federation of India
The Non Woven Federation of India (NWFI), representing the regional...
Tiasha Renganathan Twinery Innovations by MAS
Twinery-Innovations by MAS is the innovation arm of Sri Lankan company MAS ...
Sarah Denise Cordery Sarah Denise Studio
Manchester, England-based Sarah Denise Studio provides relevant fashion...
Sandeep Gonsalves & Sarah Gonsalves Sarah & Sandeep
Established in 2012, Sarah & Sandeep is a luxury menswear label...
Megha Kumari & Jigar Mali Label Megha & Jigar
New Delhi based label Megha & Jigar blends India's unique handcrafts...
Press Release
Letter to Editor
RSS Feed
Search Companies
editorial@fibre2fashion.com
Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.
Subscribe today and get the latest information on Textiles, Fashion, Apparel.
Download Free Report
Rising Opportunities in Technical Textiles Market: 2020-2026
Thank you for showing interest in our free report on 'Rising Opportunities in Technical Textiles Market: 2020-2026'
You will receive an email shortly with a link to download the report and in case if you don't receive our email, you can write back to texpro@fibre2fashion.com.
Thank You!