Why did the government hike GST rate for garments under Rs 1,000?

The Indian government in September decided to increase the Good and Services Tax (GST) rate on readymade garments and fabrics that cost less than Rs 1,000. While the new tax rates will come into effect from January 1, the Indian textile industry is worried about the planned hike in the tax rate, arguing that such a move will affect 85 percent of the market and will lead to an increase in the…