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GST Council defers hike in GST on textiles from 5% to 12%

GST Council defers hike in GST on textiles from 5% to 12%

GST Council has unanimously decided to defer hike in GST on textiles from 5 percent to 12 percent, sources told Sources to CNBC-TV18. The matter will be discussed again in the next Council meet for future roadmap.

The GST rate hike on textiles from 5 percent to 12 percent was to come into effect from January 1.

On December 30, several states flagged higher tax rate on textile products from January 1 and demanded that the rate hike be put on hold. In the pre-budget meeting chaired by Union Finance Minister Nirmala Sitharaman, states like Gujarat, West Bengal, Delhi, Rajasthan and Tamil Nadu said that they are not in favour of a hike in Goods and Services Tax (GST) rate on textiles to 12 per cent, from 5 percent currently, with effect from January 1, 2022.

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