GST Council defers hike on textiles from 5% to 12%

Finance minister  Nirmala Sitharaman  has said that the GST Council has decided to defer the proposed hike in the GST rate on textiles from 5% to 12%. Several states flagged the issue and sought a deferment of the proposed hike, the minister said after the 46th  CST Council meeting in New Delhi on Friday. The issue of the GST rate on textile will be sent to the tax rate rationalisation committee, which will submit its report by February, she said. States like Gujarat, West Bengal, Delhi, Rajasthan and Tamil Nadu said that they are not in favour of the GST hike, which was scheduled to come into effect from January 1, 2022. Since 2019, GST Council has considered such correction in the inverted duty structure in approximately 10 items, Sitharaman said.

GST Council had made certain recommendations for revision in GST rate, to correct inverted duty structure and other anomalies. This included the revision of rates in the textiles sector which was scheduled to come into effect from January 1, 2022. Currently, a 5 per cent tax on sales up to Rs1,000 per piece is charged. The Council will review this matter in its next meeting in February 2022," Himachal Pradesh industry minister Bikram Singh informed. The Delhi government issued a statement opposing the GST hike. Deputy chief minister Manish Sisodia said the government won't let the common man's voice be suppressed.