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GST RATE CHANGES ON CLOTH, APPAREL, FABRIC, FOOTWEAR & MAN MADE FIBRE FROM 5% TO 12%

According to Notification by Ministry of Finance Under GST Act there will be changes of rates on CLOTH, APPAREL, FABRIC, FOOTWEAR & MAN MADE FIBER w.e.f. 01/01/2022 as notified in circular vide Notification No. 14/2021-IGST & Notification No. 14/2021-CGST Dated-18th November, 2021.

The below mentioned amendments have been postponed by the Government by a new press release on 31st December 2021 in 46th meeting of GST council. 
Changes in GST Rates of Woven Fibers which comes under sec 203,207,211,216-218,218A,218C,219A,219B,220,221-224,224A and 225

Previously the Rates on Woven Fibers and fabric cloth were likewise

Apparels of MRP or Retail price Up to ₹ 1000 - GST - 5%
Apparels of MRP or Retail price Above ₹ 1000 - GST - 12%

Current Rates Applicable W.E.F. 01/01/2022 will be likewise

All Apparels, Fabrics, Woven Fibers, blankets, linen, bags and any other made of cloth fabric etc. starting from MRP ₹ 1 - will be charged at a uniform GST - 12%

Rate 5% has been abolished and removed from clothes and now From 01/01/2022 every goods comprising of apparels will be levied with a tax rate of Flat 12% irrespective of the MRP slab and value.

There are no exceptions or exemptions of goods in category of clothes for Tax rate and every type of cloth goods is attracting a GST rate of 12%. (CGST-6% & SGST-6%)
(IGST-12%)

Detail analysis section wise details of different materials are given in below provided pdf in the link.

For consumer or customers who are byuing the products on MRP has not to pay any extra amount on MRP as the the new MRP (with increased tax amount) will be applicable on all products including the 12% GST rates. The customers dont have to pay and extra on MRP but the MRP itself will get increased and ultimately the consumer will have to bear a high tax rate and the clothes and apparels are going to be very expensive From 01/01/2022 as the rate has straight away jumped by 7%.


The Cloth will be Expensive no doubt but only the small products and products of less value will be more expensive as we all know that there will be no changes on the MRP or rate above ₹1000. The products of MRP more then ₹1000 will have a slighter fluctuations as raw materials used in processing will attract now a charge of 12% as compare to 5% but overall the goods up to ₹1000 will only be costlier and rest there will be no such jump in the rates of Woven Fibers and Apparels.

Changes in GST Rates of Footwear which comes under Sec and Chapter 64

Previously the Rates on Footwear were likewise

Footwear of MRP or Retail price Up to ₹ 1000 - GST - 5%
Footwear of MRP or Retail price Above ₹ 1000 - GST - 18%

Current Rates Applicable W.E.F. 01/01/2022 will be likewise

Footwear of MRP or Retail price Up to ₹ 1000 - GST - 12%
Footwear of MRP or Retail price Above ₹ 1000 - GST - 18%

Footwear which comes under Sec 64 and the value of footwear whose value does not exceed ₹1000 will attract a GST of 12% and any other Footwear other than chapter 64 will attract a GST rate of 18% as before.

Segregated details of Footwear chapter and section wise are given in the below link.


The Footwear given in the above link which is showing 5% is now Jumped to 12%.






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