Nagpur: In what can be considered as a major relief to the industry, the GST council on the last day of the year has decided to hold the decision to hike tax rate on textiles to 12 per cent.
This development comes after many states opposed the move planned by the GST council. The council meeting, chaired by the union finance minister Nirmala Sitharaman along with state counterparts decided to deliberate the issue further in its next meeting. The issue of the GST rate on textile will be sent to the tax rate rationalization committee which will be submitting the report by February.
Himachal Pradesh industry minister Bikaram Singh said, “GST Council has decided to defer the hike in the GST rate on textiles (from 5% to 12%). The Council will review this matter in its next meeting in February 2022.”
Earlier finished goods such as apparels, footwears and textiles were set to get more expensive from January 1, 2022 with the central government increasing GST on such items from existing 5 per cent to 12 per cent.
