Big decision in GST Council meeting! GST will be 5% on textiles: Sources

According to sources, the GST Council 46th meeting has decided to maintain GST at 5 per cent on textiles.

Earlier, the government had decided to impose 12 per cent GST on textiles. (GST)

At present, 5 per cent GST is being levied on textiles. According to sources, all the states have agreed to any change in GST. From January 1, 2022, the central government had notified a tax increase on natural fiber products from 5 per cent to 12 per cent.

There was opposition to the tax increase

Amit Mitra, an adviser to West Bengal Chief Minister Mamata Banerjee, had said a few days ago that 1.5 million people were likely to lose their jobs if the tax was not withdrawn. He said it would also affect people in the industry. And one lakh small units can be shut down. (GST)

He said many units would return to the unorganized sector. He accused the central government of not discussing the issue at the GST conference before raising taxes. However, no official announcement has been made to roll back GST on textiles.

More than 80 lakh traders are associated with it. The decision can be taken in view of the elections in 5 states as the GST Council has only representatives of the states.