Bengaluru, 25 Aug 

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.

Sajjan Raj Mehta, chairman of the association’s taxation committee, aid in a statement addressed to Finance Minister Nirmala Sitharaman and GST Council members that a 5 per cent GST across all garments and hosiery products would provide a level playing field for MSMEs and organised players.

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.

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.

“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, industry growth and safeguarding state revenues.