Fashion
India’s new GST makes artisan-made ethnic wear costlier

Before GST restructuring, garments priced above ₹1,000 were taxed at 12 per cent, while those below that threshold attracted 5 per cent GST. The GST Council has now raised the price threshold to ₹2,500. Under the new system, garments priced up to ₹2,500 attract 5 per cent GST, while those priced above fall into the next slab of 18 per cent, as the 12 per cent slab was removed. This has effectively increased the tax rate on expensive garments. Branded apparel, premium winter wear like coats and suits, wedding attire, and traditional ethnic wear—often priced above ₹2,500—are now costlier for consumers.
India’s next-gen GST reforms have simplified taxation with a uniform 5 per cent rate and resolved the inverted duty structure.
However, garments priced above ₹2,500 now face 18 per cent GST, making premium apparel, artisan-made ethnic wear, and wedding attire costlier.
Industry bodies warn this will hurt affordability, promote grey market activity, and urge a review of price-based slabs for garments.
Industry bodies have expressed concern over price-based GST slabs for garments. The Retailers Association of India (RAI) stated, “Price-based thresholds will create distortions and promote grey market activity. They will lead to misreporting, compliance challenges, and harm organised retail—especially mid- and premium-priced products.” RAI added that the new tax structure could discourage domestic manufacturing, undermine Make in India, and artificially force consumers to downgrade purchases rather than expand demand.
The higher 18 per cent tax rate on garments above ₹2,500 is expected to hurt middle-class affordability, weaken the organised retail sector, and impact categories like wedding apparel, winter wear, artisan-made products, festive clothing, and traditional weaves.
RAI said that all garments should ideally be taxed at 5 per cent, or at the very least, a more reasonable price threshold should be established.
The Clothing Manufacturers Association of India (CMAI), however, welcomed the increase in the price threshold for the 5 per cent tax rate, calling it a “positive move”. But it urged the GST Council to abolish price-based taxation altogether. All garments, irrespective of price, should be taxed at 5 per cent, or at least a more reasonable and realistic price level should be set, CMAI said.
It further noted that garments above ₹2,500 are also widely consumed by the middle class, including woollen clothing, occasion wear, Indian traditional clothing, handlooms, and embroidered artisan-made products. All these will now see a significant price rise due to the revised GST rate. CMAI strongly urged the GST Council and government to review this aspect.
Fibre2Fashion News Desk (KUL)
Fashion
ONLY, RE&UP, Deniz Partner to Advance Circular Fashion

This initiative from ONLY underscores BESTSELLER’s strategic focus on reducing the need for virgin materials, including polyester. The project is a collaborative effort between ONLY, materials textile-to-textile recycling company RE&UP, and Turkish garment supplier Deniz.
Bestseller’s ONLY has partnered with RE&UP and Deniz to create garments using textile-to-textile recycled polyester and cotton from worn-out clothes and factory waste.
The project reduces virgin polyester usage while maintaining performance and durability, aligning with Bestseller’s focus on scalable, innovative recycling solutions for its popular NOOS and other collections.
Several of BESTSELLER’s major brands are actively integrating recycled materials into their existing collections, including the popular “Never Out Of Stock” (NOOS) range, known for its classic, timeless basics that transcend seasons and trends.
This enables us to create garments made from worn-out clothing and factory textile waste, while offering the same performance and durability as if it were made from virgin polyester. Pernille Tøttrup Sourcing Process Manager, ONLY.
Ideally, recycled polyester is sourced from textile-to-textile recycling processes. BESTSELLER is investing in and partnering with several innovative technology companies in this field to ensure both innovation and scalability.
RE&UP, specialised in next-gen textile-to-textile recycling, uses a combination of mechanical and thermo-chemical processes. Their modular technology is capable of separating cotton and polyester and regenerating them into ‘new’ high-quality recycled cotton and recycled polyester.
Innovation and quality
“RE&UP shares our dedication to innovation and quality, and their textile-to-textile recycled polyester meets the high standards we set for our products. This enables us to create garments made from worn-out clothing and factory textile waste, while offering the same performance and durability as if it were made from virgin polyester,” says Pernille Tøttrup, Sourcing Process Manager at ONLY.
In the initial production run, 11 styles have been converted from conventional polyester to RE&UP next-gen recycled polyester. This equates to more than 100,000 t-shirts. RE&UP is currently scaling its capacity, with the ambition to process 1 million tonnes of textile waste by 2030.
“This collaboration shows that textile-to-textile recycling is not a distant ambition, it’s already delivering industry-ready, cost-competitive fibres. Transforming the industry is undoubtedly a complex and lengthy process, but by working with partners like ONLY, we demonstrate how recycled polyester from textile waste can be a real and scalable alternative to virgin materials,” says Ozgur Atsan, CCO at RE&UP.
150,000 jackets
Earlier this year, BESTSELLER menswear brand JACK & JONES also successfully converted a NOOS bumper jacket to recycled polyester made from textile waste. This involved their best-selling style ‘Rush’, translating to 150,000 garments.
“We are actively reshaping our approach to materials, prioritising a shift from conventional to organic cotton and from virgin to recycled polyester,” explains BESTSELLER’s Head of Sustainability, Dorte Rye Olsen. She adds:
“In an ideal world, all textiles would become part of a circular production system once they are worn out. Here, we see examples of how this can be achieved. At the same time, we are aware that there is still a long way to go. Therefore, alongside exploring and investing in textile-to-textile solutions, we’re currently also expanding our use of recycled materials from other waste feedstocks.”
Note: The headline, insights, and image of this press release may have been refined by the Fibre2Fashion staff; the rest of the content remains unchanged.
Fibre2Fashion News Desk (RM)
Fashion
Logistics now central to strategy, risk, resilience in India: Report

In just a decade, India has expanded its National Highways by 60 per cent, overtaken the United States to become the world’s second largest rail freight carrier and set sights on tripling air cargo capacity by 2030. Ports are on track to push India into the global top five shipping nations, the September 2025 logistics (transportation) update released by the company noted.
Highway construction has accelerated by 2.5 times, from 11.6 km/day in fiscal 2013-14 (FY14) to 29 km/day in FY25, with aspirations of 100 km/day.
Logistics has moved from the backroom to the boardroom, becoming central to strategy, risk and resilience in India, according to a recent report.
In just a decade, India has expanded its National Highways by 60 per cent, overtaken the US to turn the second largest rail freight carrier.
E-commerce is projected to catapult air cargo from $5 billion to $200 billion by 2030.
The length of National High-Speed Corridors (HSC) has increased 26.6 times from 93 km in 2014 to 2,474 km at present
Rail has emerged as a new force in automotive transport: from a 1.5 per cent share a decade ago to nearly 25 per cent today, powered by 170 dedicated rakes and double-decker wagons.
India’s ports handled 1,594 million tonnes in FY25 (6 per cent compounded annual growth rate since FY22), while a $20 billion investment push is set to expand capacity six-fold by 2047.
E-commerce alone is projected to catapult air cargo from $5 billion to $200 billion by 2030, driving demand for freighters and faster handling.
The National Highways Authority of India (NHAI) is rolling out a ₹3.4 trillion pipeline of 124 projects spanning 6,376 km, backed by record-high capital expenditure of ₹2.5 trillion in FY25.
But growth is only one side of the story. The other is disruption. The 50-per cent US tariffs are reshaping trade flows, driving a 9-per cent surge in India’s containerised exports in the first half this year before duties kicked in.
Logistics costs have fallen from 16 per cent to nearly 10 per cent of gross domestic product (GDP), with the government pushing for single-digit costs by year-end, the report added.
Fibre2Fashion News Desk (DS)
Fashion
Bodycare to shut another 30 stores

Published
September 16, 2025
The closures at the failed Bodycare chain aren’t over. Only shortly after it closed 32 of its 147 stores, the business is now closing a further 30 with the loss of 235 jobs. That means 685 jobs have gone so far since the collapse a few weeks ago.
A spokesperson for the administrators said that there had been “interest from a number of parties” regarding the remaining 85 stores that it’s hoped will continue to trade under new owners.
Of the new list of UK-wide stores set for closure, 14 will happen as soon as 16 September with the rest to shut on Thursday.
“Unfortunately, given the shortage of stock and costs associated with operating stores, it is no longer viable to continue to trade all 115 stores retained on appointment,” the spokesperson said.
In late August, it had emerged that the business was on the verge of collapse and was seeking a buyer to try to avoid administration. But as is so often the case in such situations, a business like that is much more attractive post-administration given that the filing will have allowed it to shed jobs and exit store lease such more easily than as a going concern.
The chain’s problems were recently cited by Warpaint London as one of the issues that led to its own profit warning.
Until its administration, Bodycare was run by former Beales chief Tony Brown and was owned by Baaj Capital. The company had enjoyed a long and successful history but the pandemic was a major blow from which it hadn’t properly recovered even as UK retail opened back up.
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