GST Council Defers Hike In Prices On Textile

From 5% to 12%

The Goods and services tax (GST) Council has decided to defer the hike in GST on textiles from 5 percent to 12 percent. 

According to the information, the matter will be discussed again in the next Council meeting for a future roadmap. The hike in textiles from 5 percent to 12 percent was supposed to come into effect from January 1.

In the pre-budget meeting chaired by Union Finance Minister Nirmala Sitharaman, states like Gujarat, West Bengal, Delhi, Rajasthan, and Tamil Nadu said that they are not in favor of a hike in Goods and Services Tax (GST) rate on textiles to 12 percent, from 5 percent currently, with effect from January 1, 2022. Also, the Delhi government supported the protesters against this hike in GST. 

According to the statement given by Deputy Chief Minister Manish Sisodia, it would raise the issue in the GST Council meeting. He tweeted that, the protest by textile traders against a hike in GST from 5 percent to 12 percent is justified. The AAP and Delhi government under the leadership of Arvind Kejriwal have been in favor of keeping the tax rates low. I will demand keeping the tax on textiles low in the GST Council meeting tomorrow."