New Delhi: The GST Council has decided to defer decision on increased tax on textiles from earlier 5 percent to the proposed 12 percent in the GST (Goods and Services Tax) Council meeting on Friday, said Zee Media sources.
As per reports, the GST Council has unanimously decided to defer the hike in the 46th GST Council meet chaired by FM Nirmala Sitharaman.
GST Council , a governing body to regulate and direct each and every step for the implementation of GST in the country, had recently made certain recommendations for revision in the GST rate in order to correct inverted duty structure and other anomalies.
This includes revision of rates in the textiles sector which was supposed to come into effect from January 1, 2022.
At present, a 5 per cent tax on sales up to Rs 1,000 per piece is charged, whereas the recommendation of the GST Council to increase the rates on textiles from 5 per cent to 12 per cent will impact a large number of small traders dealing in the textile sector as well as the consumers who will be forced to pay at exorbitant rates if the rule is implemented.
The textile sector has opposed the recommendation, saying that such a decision may create a negative impact resulting in a drop in demand and recession.
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