GST Rate Hike on Textile Deferred by The Council

The GST Council on Friday has decided to defer the rate hike on textiles from 5% to 12%, with the issue being reviewed at the next meeting in February, Bikram Singh, Industry Minister, Himachal Pradesh, told the media.

Earlier, traders had demanded withdrawal of 12% GST on Textiles and Footwear. Indian industry and other various States have opposed the increase in the tax to 12% from 5% effective 1st January 2022, citing higher compliance cost for the unorganised sector and MSMEs, and also claiming that it will make the ‘poor man’s clothing expensive’.


Knowledge Source

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