The Goods and Services Tax (GST) Council on Friday deferred hiking the GST on textiles from 5% to 12%. The 46th meeting of the GST Council was held in the national capital under the chairmanship of Union Finance Minister Nirmala Sitharaman.
The all powerful GST Council will review the matter in its next meeting in February 2022, Bikram Singh, Industry Minister, Himachal Pradesh, told news agency ANI.
Earlier, reports had suggested that the sharp increase in GST on textiles was expected to be rolled back due to pressure from businesses and traders. Several states also opposed the move, forcing the Council rethink the hike on textile.
At its last meeting in September, the GST Council corrected the inverted duty structure, a situation where tax on raw materials is more than that on finished products in the sector by raising rates on finished goods. The Council raised GST on 18 items, including woven fabrics of cotton, silk and wool, coirmats, matting and floor covering, apparel and clothing accessories of sale value up to 1,000 from 1 January. An increase was also approved for footwear that cost up to 1,000 a pair, but the council may not consider a similar rollback for it.