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gst council meeting latest updates tax rates textiles nirmala sitharaman | Which big decisions were taken in the GST Council, Nirmala Sitharaman gave information

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GST Council Meeting Updates: What are the big decisions taken in the GST Council, Nirmala Sitharaman gave information

Highlights

  • In the meeting, the decision to increase the rate of GST on clothes to 12 percent was withdrawn
  • From January 1, 2022, the crisis of inflation hitting clothes has been averted.
  • In the last meeting, it was decided to revise the GST rate on shoes and clothes.

GST Council Meetings: A hallmark of how inflation will attack your pocket on the new year has come to know from the meeting of the GST Council. On Friday, December 31, the 46th important meeting of the GST Council was held in Delhi, in which the decision regarding GST rates was taken. After the meeting, Finance Minister Nirmala Sitharaman informed the media about the meeting.

The Finance Minister said that it is not right to implement the proposal to increase GST rates on textiles at this time, as the corona epidemic is still going on. He said that in today’s meeting, the decision to increase the rate of GST on clothes from 5 per cent to 12 per cent has been withdrawn. In such a situation, clothes will not be expensive in the new year. Earlier in the month of September, the 45th meeting of the GST Council was held. In that meeting some decisions were taken regarding the tax rate. In this meeting, it was considered to withdraw that tax rate.

Clothes will not be expensive from January 1

There is good news for clothing lovers. From January 1, the crisis of inflation hitting clothes has been averted for the time being. Following protests from several states including Tamil Nadu and West Bengal, the GST Council on Friday decided to stay the decision to increase the tax rate on cloth from 5 to 12 per cent. It is likely to be reviewed in the next meeting to be held in February. Explain that from January 1, 2022, there was a plan to increase the GST on textiles and shoes from 5 percent to 12 percent. From state governments to industries and businessmen related to these areas were opposing it. In the last meeting of the Council held on September 17, a decision was taken to revise the GST rate on footwear and clothing.

decision to impose tax

The decision to increase the tax on cloth has been deferred in the 46th meeting of the GST Council, chaired by Union Finance Minister Nirmala Sitharaman and chaired by state counterparts. At present the tax rate on man-made fiber (MMF) is 18 per cent, MMF yarn at 12 per cent, while fabric attracts 5 per cent tax. The council, in its last meeting on September 17, had decided to correct the inverted duty structure in the footwear and textile sectors.

Know which states protested

States such as Gujarat, West Bengal, Delhi, Rajasthan and Tamil Nadu have said they are not in favor of increasing the Goods and Services Tax (GST) rate on textiles from 5 per cent to 12 per cent with effect from January 1, 2022. Adviser to West Bengal Chief Minister Amit Mitra had earlier urged the Center to roll back the proposed tax rate hike on textiles, saying it would lead to closure of around 1 lakh textile units and loss of 15 lakh jobs.

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Salman Sahr

Salman is a journalist at UsamaSpeaks.com and he deals with Latest News, World News, and Business News. Salman is a very professional and authentic news journalist.

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