GST On Textiles Will Not Be Increased From 5 Per Cent To 12 Per Cent: Nirmala Sitharaman

TPI Staff December 31, 2021

80 1 minute read

Govt Announces 8 COVID-19 Relief Measures Including 4 New Measures

Mumbai: Union Finance Minister Nirmala Sitharaman on Friday said the Goods and Services Tax (GST) Council has decided to defer the decision to increase the tax on textiles from 5 per cent to 12 per cent.

The decision to maintain the status quo on the GST rate on textiles was taken at an “emergency meeting” of the GST Council held in the national capital under the chairmanship of the Union Finance Minister.

“We retain the status quo. We have decided don’t go from 5 per cent to 12 per cent,” Sitharaman said in a media briefing after the GST Council meeting. Sitharaman said the issue of GST on textiles will be sent to the tax rate rationalisation committee, which will submit the report by February.

“Textiles were the only issue in this meeting,” said the finance minister. He said the issue of increasing GST on footwear was not discussed during the meeting.

The GST Council, in a meeting held in Lucknow on September 17, had decided to increase the GST on textile and footwear items from 5 per cent to 12 per cent with effect from January 1, 2022.