GST hike on textiles decided to return, not rollback on footwear
GST Council Meeting Update: The GST Council headed by Finance Minister Nirmala Sitharaman has withdrawn the decision to increase the rates of GST on clothing. At present, there will be no increase in GST on textiles. That is, at present, the GST rate on textiles will continue to be 5 percent.
Giving information about the meeting, Finance Minister Nirmala Sitharaman said that the matter of review of GST rate on textiles has been sent to the Group of Ministers. The committee will submit its report by February 2022. After this, the recommendations of the Group of Ministers will be discussed in the meeting of the GST Council in February or March.
Meeting held on the demand of Finance Minister of Gujarat
The Finance Minister said that a meeting of the GST Council has been called under the emergency notice. The Finance Minister of Gujarat wrote a letter in which in the meeting of the GST Council in September, there was a demand to reconsider the decision to increase the GST rate on textiles.
Discussion on postponing increased GST on textile sector
The GST Council had decided that the GST on textile products would be increased from 5 per cent to 12 per cent from January 1, 2022, but the state governments and the textile industry were opposing the increase in the GST rate. Therefore, in today’s meeting of the GST Council, discussion was held to postpone the decision to increase the GST on clothing from 5 percent to 12 percent and its decision was taken.
No rollback of GST hike decision on footwear
Due to opposition from the state governments and textile companies, the decision to increase the GST on textiles has been withdrawn but the decision to increase the GST on footwear has been retained. That is, from January 1, 2022, 12 percent GST will have to be paid on shoes costing more than Rs 1,000. The Finance Minister said that there was no discussion on this in the council meeting.
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