Increase in GST rate on textile from 5% to to 12% deferred by GST Council

Increase in GST rate on textile from 5% to to 12% deferred by GST Council in decision taken at 46th GST Council Meeting called on emergency basis.

The GST Council’s 46th meeting was held today in New Delhi under the chairmanship of Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman.

According to the Finance Minister, textile was the only agenda of discussion in this emergency meeting. According to the Finance Minister the meeting was triggered by a letter from the Finance Minister of Gujarat requesting for reconsideration of the September 2021 decision of the Council. 

The GST Council has recommended to defer the decision to change the rates in textiles recommended in the 45th GST Council meeting. Consequently, the existing GST rates in textile sector would continue beyond 1st January, 2022.

As per the decision, the increase in rate of GST on textile from 5% to to 12% has been deferred and status quo has been maintained.

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