Footwear, readymade garments likely to attract higher rates of GST

The fitment committee, which recommends rate changes to the Council, has proposed increasing the rate on footwear (less than Rs 1,000), readymade garments, and fabrics to 12% from 5% now

Footwear and readymade garments may have higher rates of goods and services tax (GST) with the GST Council expected to take up correcting the inverted duty structure in its meeting on Friday.

The fitment committee, which recommends rate changes to the Council, has proposed increasing the rate on footwear (less than Rs 1,000), readymade garments, and fabrics to 12 per cent from 5 per cent now.

For inputs like manmade fibre and yarn, the panel has proposed reducing the rate to 12 per cent from 18 per cent to correct the distortion.

The fitment panel comprises officers from the Centre and some states.

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