46th GST Council Meeting was a brief meeting with only one agenda which was triggered by a letter written to Union Finance Minister Smt. Nirmala Sitharaman by FM of Gujarat requesting reconsideration of Sep 2021 GST Council decision of Increase in GST for Textile Sector from 5 to 12% wef 01.01.2022.
The decision (45th GST Council) was taken in the process of correcting the inversion in the tax structure.
Since 2019, GST Council has considered such correction in the Inverted Duty Structure in approximately 10 items.
A Committee under the convenorship of Karantaka CM BS Bommai looks after the Rate Rationalization of GST It was decided in today’s meeting that Textiles will again be put before the Committee along with other items.
The Committee would submit its report by February next year which will then be circulated to all the members The Committee’s Report would be discussed in the GST Meeting in March 2022.
Textile Industry felt that there could be a temptation not to come into the formalized system the immediate pressure could mean that some may go into the informal way of doing business
46th GST Council Meeting held today has decided to retain the status quo on rate at which Textiles are taxed. GST Rate will remain at 5% for now. GST rate hike on textiles from 5 % to 12 % was to come into effect from January 1, 2022.
Source- Twitter
Relevant Press Release is as follows:-
46th Meeting of the GST Council, Lucknow
31st December, 2021
***
PRESS RELEASE
Recommendations of 46th GST Council Meeting
Existing GST rates in textile sector to continue beyond 1st January, 2022
The GST Council’s 46th meeting was held today under the chairmanship of the Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman.
The GST Council has recommended to defer the decision to change the rates in textiles recommended in the 45th GST Council meeting. Consequently, the existing rates in textile sector would continue beyond 1st January, 2022.
******
The GST Council recommends deferring the earlier decision to change the rates in textiles recommended in the 45th GST Council meeting
Existing rates in Textiles Sector to continue beyond 1st January, 2022
Department of Revenue had notified GST @12 % on MMF, MMF yarn, fabrics and apparel on 18.11.2021which was to come into force from 1st January, 2022.
Fabrics and Apparel Industry represented against this revision of GST slab from 5% to 12%.
This Ministry under the able leadership of Shri Piyush Goyal, Hon’ble Minister for Textiles, Smt. Darshana Jardosh, Hon’ble Minister of State for Textiles arranged meeting of a delegation of textiles industry and trade representatives with Hon’ble FM regarding the concerns of textiles industries.
After persuasion of HMoST, the GST Council’s 46th meeting was held today under the chairpersonship of the Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman. The GST Council has recommended deferring the earlier decision to change the rates in textiles recommended in the 45th GST Council meeting. Consequently, the existing rates in textile sector would continue beyond 1st January, 2022.
Ministry of Textiles expresses its hearty thanks and is grateful to Hon’ble Prime Minister and Union Finance & Corporate Affairs Minister for considering the requests of industry stakeholders especially in present challenging times when the sector is on the path of recovery.
