The 46th meeting of the GST Council, headed by Union Finance Minister Nirmala Sitharaman, has come to an end. After the meeting, Himachal Pradesh Industry Minister Bikram Singh informed that the GST Council has decided to postpone the increase in the rate of GST on clothing from 5% to 12%.

The 46th meeting of the GST Council, headed by Union Finance Minister Nirmala Sitharaman, is over and the results of the meeting will be announced at 3 p.m. Earlier, Himachal Pradesh Industry Minister Bikram Singh shared important information about the decisions taken after the meeting. He informed that the GST Council has decided to postpone the increase in the rate of GST on clothing from 5% to 12%. The council will review the matter at its next meeting in February 2022.

Many states were protesting

At the council meeting, while the increase in GST rate on clothing has been postponed till February 2022. Significantly, the GST Council has decided to block its decision after several states, including Tamil Nadu and West Bengal, opposed the move. The 46th meeting of the GST Council, chaired by Union Finance Minister Nirmala Sitharaman and its state counterparts, decided to consider the issue further at its next meeting.

Currently GST rates on clothing

At present GST rate on man-made fiber (MMF) is 18 per cent, on MMF yarn it is 12 per cent and on fabric it is 5 per cent. The council, at its last meeting on September 17, decided to change the structure of GST rates in the footwear and textile sectors.

Shoes and slippers will become more expensive from the new year

It was decided at the GST Council meeting that from January 1, 2022, 12 per cent GST will be applicable on all footwear, regardless of the cost of the footwear. That is, whether the price of shoes is Rs.100 or Rs.1000, GST will be levied at the rate of 12% on all. It was also decided that a uniform GST rate of 12 per cent would be levied on non-cotton textile products including readymade garments.

There is no decision on slab reduction

It was believed that the slab could be reduced in today's meeting. The GST Council meeting discussed the merger of the 12 per cent and 18 per cent slabs, but could not decide. According to the report, the idea of ​​reducing taxes on footwear and merging the two slabs will now be considered at the next council meeting.