Chaini Parwani
Published On: December 31, 2021 at 16:59 IST
Unanimously, the Goods and Services Tax (GST) Council has decided to defer hike in GST on textiles from 5% to 12%.
It was highlighted that the GST rate hike on Textiles from 5% to 12% was proposed into effect from January 1.
Previously, several states argued higher Tax rate on textile products from January 1 and requested that the rate hike decision be put on hold.
Further in the pre-budget meeting adjudicated by Union Finance Minister Nirmala Sitharaman, states like Gujarat, West Bengal, Delhi, Rajasthan and Tamil Nadu opposed the hike in Goods and Services Tax (GST) rate on textiles to 12% from the current 5%, with effect from January 1, 2022.
The 46th meeting of the GST Council is scheduled to be held on December 31st, chaired by Union Finance Minister Nirmala Sitharaman and comprising state Finance Ministers is set with a program to consider Gujarat’s demand of putting the rate hike ‘decision on hold’, so as the representations received from Trade in this interest.
Manish Sisdodia, Deputy Chief Minister and Minister in-charge of Delhi Government’s Finance Department tweeted “The protest by textile traders against hike in GST from 5 per cent to 12 per cent is justified. The AAP and Delhi government under leadership of Arvind Kejriwal have been in favour of keeping the Tax rates low. I will demand keeping Tax on textile low in the GST Council meeting tomorrow.”