Karnataka Hosiery body urges GST slab rationalisation, inclusion of petroleum products

Bengaluru, Aug 25 (PTI) The Karnataka Hosiery and Garment Association on Monday urged the Goods and Services Tax (GST) Council to rationalise tax slabs on garments and hosiery items and bring petroleum products under the indirect tax regime.

The association said multiple GST rates on garments create confusion, increase compliance burdens, and raise costs for consumers.

“A uniform 5 per cent GST rate across all garments and hosiery products will reduce price volatility, curb inflationary pressures on common people, improve compliance, reduce classification disputes, and provide a level playing field for MSMEs and organised players,” said Sajjan Raj Mehta, chairman of the association’s taxation committee, in a statement addressed to Finance Minister Nirmala Sitharaman and GST Council members.

The body also pressed for inclusion of petroleum products under GST, noting that petrol, diesel, and other fuels outside the tax framework lead to cascading taxes and higher input costs across industries.

“Their inclusion will enhance transparency, lower overall costs of goods and services, benefit logistics and textile sectors where transportation is a major expense, and ensure a uniform tax structure across states, avoiding wide fuel price disparities,” it said.

While acknowledging potential revenue losses for states, Mehta suggested that a rationalised GST framework with a broader tax base could eventually boost compliance and collections, and recommended phased transition support until revenues stabilise.

The association added that rationalising GST rates would help curb price rises in essential items such as garments, which are consumed across all sections of society.

“Lower costs will boost demand, strengthen domestic manufacturing, and make Indian textiles more competitive in global markets,” it said.

It urged the GST Council to adopt a forward-looking approach to reforms, ensuring ease of business, price stability, industry growth, and safeguarding state revenues. PTI AMP SSK