In the meeting of the GST Council, the issue of increasing the GST rate on clothes was shadowed. The GST Council has unanimously decided to defer the hike in GST on textiles from 5 percent to 12 percent, sources told CNBC-TV18, quoting sources. The issue will be discussed again in the next council meeting for a future roadmap.

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Actually, from January 1, 2022, the GST on textiles and shoes is going to be increased from 5 percent to 12 percent. From the state governments to the industries and businessmen related to these areas, it is opposed. It is believed that in view of this, the decision to increase the GST rate has been postponed. In the last meeting of the Council held on September 17, a decision was taken to revise the GST rate on footwear and clothing. Addressing the press, Finance Minister Nirmala Sitharaman said, “The GST Council in its emergency meeting has decided not to increase the tax rate on a cloth to 12 percent, the tax will remain at 5 percent.” “The Group of Ministers of the states has given time till February to consider rationalization of the GST rate,” he said.

Many states demanded to withdraw the increase

In the pre-Budget meeting held with Finance Minister Nirmala Sitharaman on Thursday, many states raised the issue of increasing the GST rate on textile products and protested it. Gujarat demanded the suspension of the hiked rate on textile products. At the same time, Delhi Deputy Chief Minister Manish Sisodia said in the meeting that this would cause a huge loss to the entire textile industry. Also, this decision is not friendly to the common man and should be withdrawn. He said that only 5 percent GST should be levied on textiles. States like West Bengal, Delhi, Rajasthan, and Tamil Nadu have also supported this demand.

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