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Apparel Sector

By Parvati Das , 8 September 2025
A

GST Overhaul Redefines India’s Apparel Industry: Relief for Budget Wear, Pressure on Premium Brands

India’s apparel sector is navigating a dramatic tax reshuffle under the new Goods and Services Tax (GST) framework. The reform, effective later this month, reduces levies on garments priced below Rs. 2,500 to 5%, bringing relief to mass-market consumers and micro, small, and medium enterprises (MSMEs). However, apparel above Rs. 2,500 now attracts an 18% tax, up from 12%, intensifying cost pressures on branded and premium wear.

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  • GST
  • Economy
  • Apparel Sector
Apparel Sector

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