<p>Bengaluru: Deepavali is traditionally a time when shoppers indulge in ethnic wear, including lehengas, kurtas and salwar suits. </p><p>However, following the revised GST slabs — which set a 5% tax on garments priced below Rs 3,000 and 18% tax on those above this threshold — many garment traders and wholesalers have noticed a decline in the sales of higher-priced clothing this festive season. </p><p>Sajjan Raj Mehta, a trade activist and garment shop owner in Chickpet, highlighted the impact of these tax changes on ethnic wear sales in the city. </p><p>“Due to the high tax margin on these clothes, our sales have taken a significant hit. Our only sales this season came from ethnic wear, mainly three-piece suits (kurta, pajama, and dupatta) under Rs 3,000.” </p><p>He reported that sales of more elaborate ethnic wear have dropped by 20% to 30%. He suggested that the government consider raising the 5% tax slab to a higher price range rather than capping the 18% slab at Rs 3,000 to better support garment businesses. </p><p>While sales of puja-related items and Deepavali gifts have increased, shoppers have been deterred from buying larger quantities of gold, silver, crackers, lights and brass idols compared to previous years, opting instead for smaller amounts. </p><p>Asadh J, owner of Emporio Clothing Store on Commercial Street, echoed these concerns, noting that the GST slabs have adversely affected sales. He explained, “With inflation in the market leading to increased tariffs, people’s purchasing power has decreased.” </p>.Two-day GST Council meeting begins: Rate cuts to slab rationalisation; Here's what to expect.<p>Although his store saw healthy sales of garments below Rs 3,000, he emphasised that this “made no difference” as profits could only be made from higher-priced garments. </p>.<p>Designer Shloka Sudakar reported a 5% drop in sales, mentioning that many clients don’t fully understand the new GST slabs and question her pricing on bridal pieces. </p>.<p>Because bridal orders are placed in advance, she requires a deposit, charging 18% on the remaining cost regardless of when the order was made. </p>.<p>Sudakar explained, “Given our high prices, the 18% adds up substantially, impacting our sales.” Her store does not carry items below Rs 3,000, leading to noticeable sales declines. </p>.<p>In contrast, garment stores selling items priced below Rs 3,000 have experienced a 20% increase in sales this festive season, with many even selling out and breaking even on investments by offering garments priced under <br>Rs 1,000. </p>
<p>Bengaluru: Deepavali is traditionally a time when shoppers indulge in ethnic wear, including lehengas, kurtas and salwar suits. </p><p>However, following the revised GST slabs — which set a 5% tax on garments priced below Rs 3,000 and 18% tax on those above this threshold — many garment traders and wholesalers have noticed a decline in the sales of higher-priced clothing this festive season. </p><p>Sajjan Raj Mehta, a trade activist and garment shop owner in Chickpet, highlighted the impact of these tax changes on ethnic wear sales in the city. </p><p>“Due to the high tax margin on these clothes, our sales have taken a significant hit. Our only sales this season came from ethnic wear, mainly three-piece suits (kurta, pajama, and dupatta) under Rs 3,000.” </p><p>He reported that sales of more elaborate ethnic wear have dropped by 20% to 30%. He suggested that the government consider raising the 5% tax slab to a higher price range rather than capping the 18% slab at Rs 3,000 to better support garment businesses. </p><p>While sales of puja-related items and Deepavali gifts have increased, shoppers have been deterred from buying larger quantities of gold, silver, crackers, lights and brass idols compared to previous years, opting instead for smaller amounts. </p><p>Asadh J, owner of Emporio Clothing Store on Commercial Street, echoed these concerns, noting that the GST slabs have adversely affected sales. He explained, “With inflation in the market leading to increased tariffs, people’s purchasing power has decreased.” </p>.Two-day GST Council meeting begins: Rate cuts to slab rationalisation; Here's what to expect.<p>Although his store saw healthy sales of garments below Rs 3,000, he emphasised that this “made no difference” as profits could only be made from higher-priced garments. </p>.<p>Designer Shloka Sudakar reported a 5% drop in sales, mentioning that many clients don’t fully understand the new GST slabs and question her pricing on bridal pieces. </p>.<p>Because bridal orders are placed in advance, she requires a deposit, charging 18% on the remaining cost regardless of when the order was made. </p>.<p>Sudakar explained, “Given our high prices, the 18% adds up substantially, impacting our sales.” Her store does not carry items below Rs 3,000, leading to noticeable sales declines. </p>.<p>In contrast, garment stores selling items priced below Rs 3,000 have experienced a 20% increase in sales this festive season, with many even selling out and breaking even on investments by offering garments priced under <br>Rs 1,000. </p>