The protest of traders against increase in goods and services tax on textile has finally payed off as GST Council has decided to defer the hike in GST rate on textiles from 5 per cent to 12 per cent.
Several states flagged higher tax rate on textile products from January 1 and demanded that the rate hike should be put on hold. Union Finance Minister Nirmala Sitharaman, in the pre-budget meeting with states like Gujarat, West Bengal, Delhi, Rajasthan and Tamil Nadu said that they are not in favour of a hike in Goods and Services Tax (GST) rate on textiles to 12 per cent with effect from January 1, 2022.
The AAP and Delhi government have been in favour of the traders. “The protest by textile traders against hike in GST from 5 per cent to 12 per cent is justified. The AAP and Delhi government under leadership of Arvind Kejriwal have been in favour of keeping the tax rates low. I will demand keeping tax on textile low in the GST Council meeting tomorrow,” read Sisodia’s tweet who is also minister in-charge of Delhi government’s finance department.
The matter will further be reviewed by the Council in its next meeting in February 2022.