NEW DELHI: At the GST (Goods and Services Tax) Council meeting on Friday, Delhi Deputy Chief Minister Manish Sisodia will press for the removal of the raised tax on textiles from 5 percent to the projected 12 percent.
"Textile traders are opposed to the increase in GST rates from 5 percent to 12 percent. "Their demand is justified," Sisodia tweeted on Thursday, adding, "I will raise the demand for keeping the tax on clothing low in the GST Council meeting on Friday."" "The Central government should wake up and take notice of the crippling inflation; they can't add salt to the poor's wounds like this," he said, adding that "small traders' companies will die a lingering death if clothing taxes are raised." The GST Council, a governing body tasked with regulating and directing all aspects of the country's GST implementation, recently issued proposals for revisions to the GST rate in order to remedy inverted duty structures and other inconsistencies. This includes a rate change in the textiles industry that will take effect on January 1, 2022.
Currently, a 5 percent tax is levied on sales up to Rs 1,000 per piece, but the GST Council's recommendation to raise textile rates from 5 percent to 12 percent will affect a huge number of small textile dealers as well as customers who will be compelled to pay excessive rates if the regulation is enacted.