GST Hike On Textiles From 5% To 12% Deferred Amid Objections
The goods and services tax (GST) Council meeting, chaired by Finance Minister Nirmala Sitharaman, today decided that the rate hike on textiles from five per cent to 12 per cent will be deferred, amid objections from states and the industry, sources told.
Many states objected to the higher tax rate on textile products and demanded that the rate hike be put on hold. The matter was raised by states like Gujarat, West Bengal, Delhi, Rajasthan, and Tamil Nadu. The states said that they are not in favour of a hike in GST rate on textiles to 12 per cent, from five per cent currently, with effect from January 1, 2022.
The issue came up for discussion during finance minister Nirmala Sitharaman’s pre-budget consultations with her counterparts from the states.
Delhi Deputy Chief Minister Manish Sisodia said the Delhi Government will protest against the proposed tax hike on textiles. “The government won’t let the common man’s voice be suppressed,” Sisodia said.
The minister stated that the textile traders are opposing the increase in GST rates and their demands are justified, so the Aam Aadmi Party (AAP) Government shall take them forward.
West Bengal’s former finance minister Amit Mitra had urged the Union finance minister to roll back a proposed hike in textile saying that it would lead to the closure of around one lakh textile units and 15 lakh job losses.
Industry bodies had also opposed the rise in tax from five per cent, citing higher compliance costs especially for the unorganised sector and micro small and medium enterprises (MSMEs) besides making the poor man’s clothing expensive.
Earlier in the year, the Central Board of Indirect Taxes and Customs (CBIC), on the recommendations of the GST Council, had announced that the GST rate on garments, textiles, and footwear would be raised from five per cent to 12 per cent with effect from January 1, 2022.
The 46th meeting of the GST Council is being held in the national capital today, where Finance ministers of States and Union Territories and senior officials are also present at the meeting.
Union ministers of state in the Ministry of Finance, Pankaj Chaudhary and Bhagwat Kishanrao Karad, besides the senior officials in the Ministry of Finance, are also attending the meeting.
The meeting holds significance as it is taking place ahead of the Union Budget for 2022-23, which is scheduled to be presented in Parliament on February 1, 2022.
Next Story :
TG-RERA Slaps 43.71 Lakh Penalty On Realtor Over Manikonda Project
![TG-RERA Slaps 43.71 Lakh Penalty On Realtor Over Manikonda Project]()
Hyderabad, Feb 21 (Maxim News): The Telangana Real Estate Regulatory Authority (TG-RERA) has stepped up enforcement against real estate developers for violations of the Real Estate (Regulation and Development) Act, 2016, taking strict action to protect homebuyers and ensure compliance across ongoing projects.
Naxalism Will End In The Country By March 31: Amit Shah
![Naxalism Will End In The Country By March 31: Amit Shah]()
Guwahati/Hyderabad, Feb 21 (Maxim News): Union Home Minister Amit Shah said that Naxalism will be eradicated from the country by March 31. He participated in the 87th CRPF Day Parade. He said that CRPF forces played a key role in Jammu and Kashmir. He said that stone pelting incidents there have come down to zero.…
Nothing Will Change With The Supreme Court Verdict: India Will Have To Pay Tariffs: Trump’s Comment
![Nothing Will Change With The Supreme Court Verdict: India Will Have To Pay Tariffs: Trump’s Comment]()
Washington/internet/Hyderabad, Feb 21 (Maxim News): Despite the sensational ruling by the Supreme Court of the United States that the tariffs imposed by the US President on countries around the world are invalid, Donald Trump has not relented. He has again imposed 10 percent tariffs on countries around the world. He said that this decision will…
AI Summit Protest : Patiala Court Rejects Bail Of Accused
![AI Summit Protest : Patiala Court Rejects Bail Of Accused]()
Delhi/Hyderabad, Feb 21 (Maxim News): It is known that a conference on artificial intelligence is being held at Bharat Mandapam in Delhi. On Friday, Congress workers staged a protest (AI Summit Protest Case) at the conference. They took off their clothes and started agitating. They demanded that the trade deal with America be canceled. However,…
FSL: Difficult To Recover Data From Those Files: Special Team Concluded
![FSL: Difficult To Recover Data From Those Files: Special Team Concluded]()
Hyderabad, Feb 21 (Maxim News): A key development has taken place in the case related to the recent major fire incident at the Forensic Science Lab (FSL) in Nampally, Hyderabad. A special team from Nagpur has found that a total of 1,100 files were burnt in the fire incident. The team tried hard to recover…
Now you can get latest stories from Indtoday on Telegram everyday. Click the link to subscribe. Click to follow Indtoday Facebook page and Twitter and on Instagram. For all the latest Hyderabad News updates
