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

World Bunts Summit to be held in Mumbai on December 7

SC dismisses PIL seeking CBI probe into Tirupati laddus row

Salman Khan gets another threat; message sent to Mumbai traffic police helpline

SC overrules 1967 verdict holding AMU can’t be minority institution

BJP MP Tejasvi Surya, editors of Kannada news portals booked for allegedly spreading fake news

Egg distribution scheme for school children under scrutiny over alleged mismanagement

India Post M’luru division to offer doorstep service to pensioners for Jeevan Praman certificate

Related Articles More

Sensex, Nifty fall over 1 pc, snap two-day rally ahead of US Fed interest rate decision

SC orders liquidation of grounded air carrier Jet Airways’ assets

Home-cooked meals become dearer in October on costlier vegetables

Sensex, Nifty surge over 1 pc on heavy buying in IT stocks as Trump set to win US polls

Das says incoming data on GDP growth mixed but positives outweigh negatives

MUST WATCH

Gho Pooja in Deepavali Festival

Melukote Deepavali

Ganapathi Co-operative Society Ltd

Udayavani Chinnara Banna 2024

Annapoorna Aahar | Food Places In Mysore


Latest Additions

Chikkaballapur: Yoga teacher feigns death by holding her breath, escapes murder bid

SC notice to Centre on plea to include ayurveda, yoga in Ayushman Bharat

BJP wants to snatch ”Jal, Jungle, Jameen” from tribals, alleges Rahul at Jharkhand poll rally

Leopard spotted near M’luru airport, Forest Dept begins search operation

Mangaluru International Airport achieves record passenger & air traffic movement in October 2024

Thanks for visiting Udayavani

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