Finally, the struggle of the textile and apparel industry has proved to be successful!
The GST Council meeting has decided that the proposed rate hike on garments from 5 per cent to 12 per cent is deferred, amidst objections from states and the industry.
As per the sources, the meeting chaired by Finance Minister Nirmala Sitharaman took this decision as many states had objected to the higher tax rate and demanded the same to be put on hold.
Industry across India is very happy with this step GST Council.
Gujarat, West Bengal, Delhi, Rajasthan, Telangana and Tamil Nadu have strongly opposed this hike, as they have not been in favour of GST hike from existing 5 per cent to 12 per cent (on textiles), with effect from 1 January 2022.
The issue came up for discussion during Finance Minister Nirmala Sitharaman’s pre-budget consultations with her counterparts from the states. Various industry bodies had a series of agitations and strikes in this regard across India.
“It is a big relief to the textile and clothing industry; we enter 2022 with a fresh bout of optimism as the big fear recedes – a great and timely gift by the GST Council. I cannot express in words the big relief that we are feeling, after living in fear since September. We had almost lost hope 3 days back, but this announcement has come just in the nick of time,” reacted Sanjay K. Jain, ICC National Textiles Committee Chairman and MD, TT Limited.
