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GST Council may defer hike in rates on textiles; slab recast may be delayed

GST Council may defer hike in rates on textiles; slab recast may be delayed

The Goods and Service Tax (GST) Council, which will meet in New Delhi on Friday, may discuss deferment of hike on GST rates on textiles and footwear from 5% to 12% and give more time to the group of ministers on rationalisation of tax rates and slabs to submit its report.

Textile and footwear industries have been up in arms against the GST Council’s decision in September to correct the inverted duty structure by increasing the GST rates on textiles and footwear with effect from January 1.

At present, tax rate on manmade fibre, yarn and fabrics is 18%, 12% and 5%, respectively. Apparel and clothing up to Rs 1,000 per piece currently attracts 5% GST. Synthetic and artificial yarn have been changed to 12% but natural yarn like cotton, silk, wool yarn are still in 5% slab.

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