Nirmala Sitharaman: Increase in the GST on textiles from 5% to 12% has been halted

After concerns from industrial organizations and certain states, Indian ministers suspended plans to raise tax rates on textile products on Friday, according to the federal finance minister. The GST Council resolved at its meeting on Friday to put the proposed increase in the GST rate on textiles from 5% to 12% on hold, according to finance minister Nirmala Sitharaman.

According to the minister, several states raised the problem and asked for a delay in the anticipated rise. In all of the sittings, however, comprehensive talks took place and no topic of tax inversion was raised, according to Sitharaman. The GST rate on textiles will be sent to the tax rate rationalization committee, which will provide a recommendation in February.

Gujarat, West Bengal, Delhi, Rajasthan, and Tamil Nadu expressed their opposition to the GST raise, which was set to take effect on January 1, 2022, at a pre-budget meeting convened by finance minister Nirmala Sitharaman. "GST Council has decided to defer the hike in GST rate on Textiles " (from 5% to 12% ). The Council will review this matter in its next meeting in February 2022,"

The Delhi administration has published a statement expressing its opposition to the GST increase. Manish Sisodia, the Deputy Chief Minister, stated that the administration will not allow the voice of the ordinary man to be silenced.

Sisodia said earlier, "I will raise the demand to withdraw the increased tax on textiles in the GST council meeting on December 31. The Central Government should wake up and take note of the backbreaking inflation; they can't rub salt on the wounds of the poor like this,"

Sisodia said, "Despite the backbreaking inflation in the country, the Central Government has proposed a humongous tax hike on textiles under the new GST regime. The Centre has proposed to shoot up GST rates to 12 percent from the current rates of 5 percent in a complete disregard of the common man's woes," 

The GST Council has made a number of proposals for changes to the GST rate, as well as corrections to the inverted duty structure and other irregularities. The textiles sector's tariffs were set to be revised on January 1, 2022. Currently, sales of up to $1,000 per piece are subject to a 5% tax.