GST Council: Several states have voiced their concerns around the revised GST on textiles. Textiles and footwear will attract 12 per cent GST, up from 5 per cent earlier.
New Delhi: Finance Minister Nirmala Sitharaman will chair the 46th meeting of the GST Council on Friday, December 31st. Minister of State for Finance, Bhagwat Karada, will also attend the meeting. The meeting, according to a report by Mint, will primarily discuss the rollback of the GST hike on Textiles that is set to take effect from January 1, 2022. Several states have voiced their concerns around the revised GST on textiles. Textiles and footwear will attract 12 per cent GST, up from 5 per cent earlier.
Ministry of Finance announced the meet on Twitter. The tweet read, “FM Smt. @nsitharaman will chair the 46th meeting of the GST Council in New Delhi, tomorrow. The meeting will be attended by MoS for Finance Shri @mppchaudhary & Shri @DrBhagwatKarad, besides Finance Ministers of States & UTs and Senior officers from Union Government & States.”
The GST hike on footwear is unlikely to be reversed, according to the report. The Centre passed the new rules to raise GST, in September, in order to correct the inverted duty structure in which raw materials attract more tax than the finished goods.
States Oppose GST Hike
Several states have voiced their concerns regarding the hike in GST on textiles. According to media reports, Deputy CM of Delhi Manish Sisodia and Telangana and Telangana Industry Minister KT Rama Rao have said that they will raise the issue in the meeting.
The rise in taxes will impact the handloom and textile production and demand in a major way, media reports said. Rao said that there is a possibility that this will impact the livelihood of 15 lakh people in the country.
