The Clothing Manufacturers Association of India (CMAI) has welcomed the GST Council’s procedural reforms but objected to the 18% GST rate on garments priced above ₹2,500, saying the garment GST rate has gone up after the last round of reforms. The garment GST rate dispute matters for retailers and buyers ahead of the festive season, according to a CMAI press release published by Fibre2Fashion on 9 October 2026.
CMAI welcomed reforms that limit the prosecution powers of GST officers and remove their power to arrest. The apparel body said, however, that the higher rate on costlier garments hurts the sector.
Why Is CMAI Objecting to the Garment GST Rate?
CMAI said garments are “probably one of the few products where GST has actually gone up after the last round of reforms.” The association is concerned about the 18% rate that applies to garments priced above ₹2,500. It had asked the government to raise the slab threshold to at least ₹10,000, a four-fold increase from the current ₹2,500 mark.
What Did CMAI Welcome in the GST Reforms?
CMAI backed the procedural changes that curb the prosecution powers of GST officers and take away their power to arrest. Santosh Katariya, CMAI’s president, is named in the press release photo caption. The statement presents the procedural reforms as a relief for businesses, while keeping its objection to the rate on higher-priced garments.
What Does This Mean for India’s Garment Industry?
CMAI argued that a higher threshold would have boosted garment consumption and sales during the upcoming festive season. Manufacturers and retailers price many products around slab thresholds, so a ₹2,500 cut-off places a share of mid-priced apparel in the 18% bracket. The release did not include data on how many garments fall above the threshold, so the size of the effect is not quantified.
Market Reaction and Industry Response
Industrial Front found no stock-market reaction, government response, or comment from other trade bodies in the source coverage. The position set out here is CMAI’s own, as stated in its press release.
What Happens Next?
CMAI’s request to raise the slab threshold to at least ₹10,000 remains a demand rather than a decision. The source did not mention a date for the GST Council to revisit garment rates. Readers should watch for any further GST Council statement and for CMAI’s follow-up representations as the festive season approaches.
Frequently Asked Questions
What GST rate does CMAI object to?
CMAI objects to the 18% GST rate on garments priced above ₹2,500. It says the rate has risen for garments after the last round of GST reforms.
What threshold did CMAI ask for?
CMAI asked for the slab threshold to be raised to at least ₹10,000. It argued this would have supported garment sales and consumption during the festive season.
What did CMAI welcome in the GST Council’s reforms?
CMAI welcomed procedural reforms that limit GST officers’ prosecution powers and remove their power to arrest.
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