GST Council : Status Quo On Textiles Rate, Stays At 5 % And Not Raised To 12% ; Decision in February 2022, Says Nirmala Sitharaman

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The 46th meeting of the GST Council was held in the national capital under the chairmanship of Union Finance Minister Nirmala Sitharaman has taken a major decision . It has deferred hiking the GST on textiles from 5% to 12%.

The GST Council meeting has decided to retain the status quo on GST rate on textile to 5% and not raise it to 12%. The issue of GST rate on textile will be sent to the tax rate rationalization committee which will submit its report by February , said Nirmala Sitharaman while briefing the media .

Bikram Singh, Industry Minister, Himachal Pradesh, told news agency ANI, that GST Council will review the matter in its next meeting in February 2022.

At its last meeting in September, the GST Council corrected the inverted duty structure — a situation where tax on raw materials is more than that on finished products — in the sector by raising rates on finished goods.