Today's GST Council meeting is expected to produce a positive resolution, according to the Textile Minister
31 December 2021, Mumbai.
The 46th meeting of the Goods and Services Tax (GST) Council, which begins tomorrow, is expected to include a discussion on the proposed increase in GST rates on clothes, as certain state finance ministers are expected to raise the matter.
The meeting will take place on Thursday, a day after the pre-Budget meetings with state finance ministers. The Group of Ministers (GoM), which was formed to examine the present GST rate slab structure, postponed its final meeting on November 27 to debate various ideas for rate rationalisation and revenue-boosting initiatives.
The GoM is now scheduled to submit its report to the GST Council immediately, which may not reflect certain states' reservations over an officer-level fitment committee's proposal of large rate modifications.
Darshana Jardosh, the Union State Minister for Textiles, joined Gujarat BJP President CR Paatil in supporting the textile industry's demand for a reduction in the GST on garments from 12% to 5%. Darshana also predicted a favourable conclusion. Gujarat's Chief Minister, Bhupendra Patel, will write a letter to the Union Government in this regard.
Because the Federation of Surat Textile Traders Association (FOSTTA) has declared a bandh in Surat to protest the GST hike, all textile trading markets in the city would be closed.
Weavers in the city will stop accepting grey bale deliveries and purchasing yarns from the 2nd to the 5th of January. Amit Mitra, West Bengal Chief Minister's Principal Chief Advisor, and Telangana Industries Minister KT Rama Rao recently urged the government to reverse the proposed raise.
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