GST Council defers textile rate hike; low-cost footwear rate to go up from Sat
NEW DELHI: Federal indirect tax body, the Goods and Services Tax (GST) Council, on Friday put on hold a decision to raise tax rates on several items in the textile and apparel industry amid pressure from businesses.
However, the tax rate on footwear priced up to ₹1,000 will rise to 12% from 5%, effective Saturday.
Finance minister Nirmala Sitharaman said the Council has decided to maintain status quo in the case of textile sector taxation and not to shift tax rate on items needing duty correction from 5% to 12%.
Sitharaman said that taxation on textiles, which was the only issue before the Council for discussion, will be examined by a ministerial committee led by Karnatka chief minister Basavaraj Bommai.
“It was decided today in the Council, textile will also be placed before the committee to be considered along with other items,” the minister said. This panel is examining rationalisation of tax rates and slabs now.
