New Delhi, December 31, : Delhi’s Deputy Chief Minister Manish Singhodia will demand that the textile tax be removed from the earlier 5% to the new proposed 12 percent in the GST (Goods and Services Tax) Council meeting. “Textile traders oppose the GST rate increase from 5% to 12%.” They are justified in their demand,” Sisodia tweeted Thursday.He added, “In Friday’s meeting of GST Council, I will increase the demand to keep the clothing tax low.”
He stated, “The Central government must wake up and notice the back-breaking inflation, they cannot rub salt on to the wounds of poor like this,” adding that “the businesses of small traders are going to die slowly if the taxes on clothing increase.”
The GST Council is a body that regulates and directs each step of the GST implementation in India.Recently, the Council made some recommendations to revise the GST rate to fix inverted duty structures and other irregularities.
The rate revisions in the textiles industry will take effect on January 1, 2022.
The current rate of 5% tax is applied to sales above Rs 1000 per unit.However, the GST Council’s recommendation to raise the tariffs on textiles from 5% to 12% will have a significant impact on small traders in the sector of textiles as well as consumers, who will need to pay exorbitant rates, if this rule is adopted.
Textile sector opposed this recommendation, arguing that it could have a negative effect on demand leading to a recession and a decrease in sales.
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