GST Hike and Slow Fashion: What It Means for Us at Erised
The Indian government recently announced a new GST structure. The old 12% slab is gone, and apparel priced above ₹2,500 will now be taxed at 18%. On paper, it is just a policy change. In reality, it changes how we make, price, and even dream about fashion.
For big fashion corporations, it is another line item in their spreadsheets. For small, independent, slow fashion brands in India like Erised, it is something we feel in our bones.
The Hidden Weight of 6%
Let me put this in perspective. A garment priced at ₹3,000 used to carry ₹360 in GST. Now, that same garment carries ₹540. An extra ₹180 may not sound like a lot at first, but here is the truth: in slow fashion, every rupee matters.
Unlike fast fashion, we do not inflate prices only to offer 70% discounts. We do not operate at the scale where “absorbing the cost” is possible. Our margins are thin because we insist on fair wages, sustainable fabrics, and mindful production. That extra ₹180 does not come from nowhere. It has to come from us, or from you, the customer.
The ₹2,500 Wall
This new tax structure has also created what I call the ₹2,500 wall.
Anything priced below ₹2,500 is taxed at just 5%. Anything above it is taxed at a steep 18%. This is not just about numbers. It is about psychology. Suddenly, a price tag of ₹2,600 feels like it belongs to a completely different world than ₹2,400, even if the product is almost the same.
For a sustainable fashion house like Erised, this is heartbreaking. Our work often cannot fit neatly under ₹2,500 because good fabrics, fair wages, and small-batch production come with real costs. And now, every time we cross that line, the tax penalty pushes us further out of reach for many of the people who genuinely want to support us.
What It Means for Erised
At Erised, this shift forces tough conversations. Do we raise prices to keep our heads above water, knowing it risks alienating some of you? Or do we absorb the extra cost, which means cutting into margins that are already fragile?
The answer, honestly, is neither easy nor perfect. What we do know is this:
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We will design more consciously, finding ways to balance accessibility with sustainability.
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We will be transparent with you about our prices and why they look the way they do.
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We will continue to create pieces that honor craftsmanship, even when it is harder to explain their worth on a receipt.
The Bigger Picture
To be fair, there are some positives in this reform. GST on raw materials like yarns and fibres has come down, which might reduce some upstream costs. But the truth remains: finished goods, the pieces you actually wear, the ones that tell stories of makers and communities, just got more expensive to make and to buy.
And in an industry already tilted heavily toward mass-produced fast fashion, this feels like yet another barrier stacked against small brands who are trying to do things differently.
Talking Is Resistance
Here is what I keep coming back to. Slow fashion has never been easy. Every step is an uphill climb against trends, against mass production, against consumer culture, and now, against tax hikes.
This GST increase will test us. It will squeeze us. It will make things harder than they already are. But what it will not do is silence us.
At Erised, we will keep talking. We will keep sharing why sustainability costs what it does, why craftsmanship matters, and why choosing slow fashion is not just a purchase, but a stand.
Because even if the numbers get tougher, our voice does not. And as long as we can talk, there is hope.
👉 If this resonates with you, share it. The more people understand what is behind the price tag, the stronger the case for slow fashion becomes.
