GST hike on textiles from 5% to 12% deferred as states oppose: Reports

The GST hike would have impacted small traders dealing in the textile sector, states said. 

The proposed hike in the GST rate on textiles from 5% to 12% will be kept on hold, the GST Council has decided in its meeting on Friday as several states flagged the issue. In the pre-budget meeting chaired by finance minister Nirmala Sitharaman, 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. “GST Council has decided to defer the hike in GST rate on textiles (from 5% to 12%). The Council will review this matter in its next meeting in February 2022,” Himachal Pradesh industry minister Bikram Singh told news agency ANI.

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. “I will raise the demand to withdraw the increased tax on textiles in the GST council meeting on December 31. The Central Government should wake up and take note of the backbreaking inflation; they can’t rub salt on the wounds of the poor like this,” Sisodia said earlier.

“Despite the backbreaking inflation in the country, the Central Government has proposed a humongous tax hike on textiles under the new GST regime. The Centre has proposed to shoot up GST rates to 12 per cent from the current rates of 5 per cent in a complete disregard of the common man’s woes,” Sisodia 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 1,000 per piece is charged.

Close Story

Source link