: GST hike on textiles from 5% to 12% deferred, says finance minister #IndiaNEWS The decision to increase Goods and Services Tax rate on textiles from 5% to 12% has been put on hold, Finance Minister

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GST hike on textiles from 5% to 12% deferred, says finance minister #IndiaNEWS
The decision to increase Goods and Services Tax rate on textiles from 5% to 12% has been put on hold, Finance Minister Nirmala Sitharaman announced on Friday. The finance minister was briefing the media after a meeting of the GST Council.In the last meeting on September 17, the GST Council had decided to revise the tax rates on textiles and low-cost footwear to 12% from 5%. The decision was aimed at correcting the inverted duty structure in footwear and textile sectors. An inverted duty structure refers to a situation when the tax rates on output or final product is lower than the tax on input.The new rates were to come into effect from January 1, 2022. However, in Friday’s meeting, the decision on tax revision of GST on textiles was deferred after many states opposed the move.“Textile was the only issue of discussion...The council’s decision was that we maintain status quo and not go to 12% from 5%,� Sitharaman said at a press conference. “But since it’s an issue of inversion, several ministers also spoke about what are the long term ways in which council is going to look at in correcting these things.�However, from Saturday, the tax rate on footwear priced up to Rs...Read more

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