04 December 2021, Mumbai:
The GST council in September decided to hike the GST on all type apparel, textile goods and footwear costing up to Rs 1,000 from 5% effective January 1, 2022 and the Central Board of Indirect Taxes a Customs (CBIC) on November 18 issued a notification about it.
All eyes are on chief minister Basavaraj Bommai as he heads a group of ministers on rate rationalisation hope that it will lower the Centre's proposed 12% GST on readymade garments, textile materials and footwear. It's a steep hike from the current 5%.
The GST council in September decided to hike the GST on all types of apparel, textile goods and footwear costing up to Rs 1,000 from 5% to 12% effective January 1, 2022 and the Central Board of Indirect Taxes and Customs (CBIC) on November 18 issued a notification about it.
The objective is to eliminate discrepancy due to inverted duty structure, where the tax rate of raw materials is higher than the rate on finished goods.
While currently fibre have been taxed at 12%, readymade garments priced below Rs 1,000 & taxed at 5% creating a problem for a trader to avail input tax ment wants to eliminate it by bringing in uniform tax rates.
ET (The news article has not been edited by DFU Publications staff)
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