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CBIC notifies rate changes for apparel, footwear and textiles from Jan 1, 2022

CBIC notifies rate changes for apparel, footwear and textiles from Jan 1, 2022

The Central Board of Indirect Taxes and Customs (CBIC) has notified an increase in goods and service tax rate of various kinds of textiles, apparel and footwear to 12% from 5% earlier, which will be effective from January 1, 2022.

However, GST rates for certain synthetic fibres and yarn have been lowered from 18% to 12%, according to the notification issued on Thursday, bringing in uniformity of rates for the entire textiles sector as well as removing distortions due to the inverted duty structure.

The GST Council in its meeting in September had decided to correct inverted duty structure on footwear and textiles, which it said will come into effect from January 1, 2022, but had left the effective rate change undecided at that time.

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