Existing GST rates in textile sector to continue beyond 1st January, 2022

Existing GST rates in textile sector to continue beyond 1st January, 2022

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Existing GST rates in textile sector to continue beyond 1st January, 2022

Single point agenda was there in the 46th GST Council Meeting. Apparently, it was the result of the representation given by Gujarat letter to Finance Minister Smt. Nirmala Sitharaman requesting reconsideration of Sep 2021 GST Council decision of Increase in GST for Textile Sector from 5 to 12% wef 01.01.2022. The decision (45th GST Council) was taken in the process of correcting the inversion in the tax structure. Since 2019, GST Council has considered such correction in the Inverted Duty Structure in approximately 10 items. A Committee under the convenorship of Karantaka CM BS Bommai looks after the Rate Rationalization of GST It was decided in today’s meeting that Textiles will again be put before the Committee along with other items.The Committee would submit its report by February next year which will then be circulated to all the members The Committee’s Report would be discussed in the GST Meeting in March 2022. 46th GST Council Meeting has finally  decided to maintain the status quo on rate at which Textiles are taxed. GST Rate will remain at 5% for now. GST rate hike on textiles from 5 % to 12 % was to come into effect from January 1, 2022.

The copy of the Press Release is as follows:- 
46th Meeting of the GST Council, Lucknow
31st December, 2021

PRESS RELEASE

Recommendations of 46th GST Council Meeting
Existing GST rates in textile sector to continue beyond 1st January, 2022
The GST Council’s 46th meeting was held today under the chairmanship of the Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman.
The GST Council has recommended to defer the decision to change the rates in textiles recommended in the 45th GST Council meeting. Consequently, the existing rates in textile sector would continue beyond 1st January, 2022.

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