The textile industry reiterates its call for the planned GST tax on textiles to be withdrawn
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11 February 2022, Mumbai:
The Confederation of All India Traders (CAIT), the country's largest business association, has requested Union Finance Minister Nirmala Sitharaman to drop the proposed GST on textiles. The textiles industry is now subject to a 5% tax rate.
For a lot of years, there was no tax on textiles or fabrics. Last year, at the GST Council meeting, it was unanimously resolved to postpone the increase in the textile tax rate from 5% to 12%. The subject has been referred to the tax rate rationalization committee, which is expected to give its report later this month.
A team met with Karnataka Chief Minister BS Basavaraj Bommai, who is also the Chairman of the GST Council's GOM, a few days ago and asked him to do so.
"The proposed hike, which is in the abeyance stage," BC Bhartia, National President, and Praveen Khandelwal, Secretary General of CAIT, said in a statement, "should be withdrawn in the larger interest of consumers of the country as such hike will load an additional burden of 7% tax rate on general consumers and will also hit the traders by blocking their capital with the department in the form of refunds."
ALSO READ: The GST Council has decided to postpone a rate increase on textiles from 5% to 12%
The rise in GST rates on textile items, according to CAIT, would not only raise the financial burden on end consumers, but will also negatively impact small businesses, as well as encourage tax evasion and other legal malpractices.
"Bringing the textile sector back into the tax net was a huge blow to the business as a whole."
"Immediately following the previous GST Council meeting, when it was suggested to fix the inverted duty structure on textiles, trade organisations throuthe ghout India led by CAIT submitted complaints," CAIT stated.
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*Figures mentioned in the above article have been sourced from Kalingatv.com & Apparel Resources article.
