GST tax hike on textiles put on hold: FM


PTI, Dec 31, 2021, 4:02 PM IST

New Delhi: Heeding to demands made by several states, the GST Council on Friday put on hold a decision to hike the tax rate on textiles to 12 percent from 5 percent, Union Finance Minister Nirmala Sitharaman said.

The panel, the highest decision-making body for indirect taxes, met under emergency provisions after states made a request for deferring the January 1 hike in GST tax rates on textiles.

Sitharaman said a similar demand for footwear was not agreed to.

A group of state finance ministers that is looking at GST rate rationalization, has been asked to look at the tax rate on textile.

The group has been asked to present the report by February next year, she said.

Currently, the tax rate on manmade fibre (MMF) is 18 percent, MMF yarn 12 percent, and fabrics are taxed at 5 percent.

The Council in its previous meeting on September 17 had decided to correct the inverted duty structure in footwear and textile sectors.

With effect from January 1, 2022, all footwear, irrespective of prices, will attract GST at 12 percent. It was also decided that a 12 percent uniform GST rate would apply on textile products, except cotton, including readymade garments.

States like Gujarat, West Bengal, Delhi, Rajasthan, and Tamil Nadu have said they are not in favour of a hike in Goods and Services Tax (GST) rate on textiles to 12 percent, from 5 percent, with effect from January 1, 2022.

Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.

Top News

Cong’s Yogeeshwara wins Channapatna Assembly bypoll by defeating Kumaraswamy’s son

Gadkari hails Mahayuti, says it prioritised development under PM’s leadership

None of Adani portfolio cos subject to any legal case: Group CFO on promoter indictment in US

20 injured in multiple collisions in Karnataka

Poll trends in favour of Mahayuti because of Ladki Bahin scheme, says Shinde

TTD repairs finger of Lord Rama idol believed to be 1,000 years old

Sealing of illegal hotel borewells in Delhi to continue, authorities tell NGT

Related Articles More

None of Adani portfolio cos subject to any legal case: Group CFO on promoter indictment in US

Binny Bansal steps down from board of PhonePe

MSEZ partners with Italy’s MIR Group for Rs 1,500 cr green facility

Sony India bags ACC media rights for eight years

Musk says X now top news app on App Store in India

MUST WATCH

Naxal Leader Vikram Gowda

Christmas Cake Fruit Mixing

DK Shivakumar

Rose Cultivation

Geethotsava


Latest Additions

Cong’s Pathan wins Shiggaon Assembly bypoll in Karnataka, defeats ex-CM Bommai’s son

Honeytrap Case: Three held for extorting Rs 3 crore from professor

Cong’s Yogeeshwara wins Channapatna Assembly bypoll by defeating Kumaraswamy’s son

Bengaluru: Woman murders her children, attempts suicide

Gadkari hails Mahayuti, says it prioritised development under PM’s leadership

Thanks for visiting Udayavani

You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.