Confederation of All India Traders (CAIT) has urged Commerce Minister to withdraw proposed GST hike on textile from 5 per cent to 12 per cent rather than deferring it.
On Tuesday, at a video conference by the Ministry of Textiles, trade associations under the CAIT umbrella said that the hike would put a ‘big financial burden’ on over 85 per cent of people in India who buys clothes of less than a thousand rupees.
The government had notified uniform GST at 12 per cent on man-made fibre (MMF) and apparel to address the inverted tax structure in the MMF textile value chain in November last year.
The changed rates were to come into effect from 1st January, 2022. Against this decision, earlier traders body had called a one-day strike.
However, at the GST Council’s 46th meeting on 31st December, 2021 under the chairmanship of Finance Minister, the government had deferred the decision of GST hike on textiles from 5 per cent to 12 per cent. Sitharaman.
Further, CAIT has said that Commerce minister has directed Textiles Ministry officials to interact with traders on the issue. On Monday, Tirupur Exporter’s Association had also requested the minister to remove cotton import duty. He has also informed the minister that Textile Mills Associations, Southern India Mills Association, Tamil Nadu Spinning Mills Association, and Indian Texpreneurs Federation were told to advise their members not to increase the cotton yarn prices disproportionate to increase in cotton prices as that will affect the value-added knitwear garment sector.
Knowledge Source
GST Collection in December Recorded at Rs 1,29,780 Crore