(T.E.T)
Despite concerns expressed by the industry, the government is unlikely to defer implementation of higher Goods and Services Tax (GST) on certain textile products, as the decision was taken by the GST Council.
The new GST rates will kick in from January 1.
The sector had opposed the increase citing higher compliance costs, especially for the unorganised sector and micro, small and medium enterprises (MSMEs), besides making clothing more expensive for the poor.
The finance ministry is expected to take up with the GST Council the concerns raised by the industry over the latter’s decision to increase the rates on several textile products to 12%.
The Council had in its previous meeting held in Lucknow on September 17 decided to correct the inverted duty structure on footwear and textiles. After this, the GST on footwear and textiles was raised to 12%, effective January 1.
“The decision to implement from January 1 was taken by the Council after intense deliberations. We will place the representations before the Council whenever it meets next,” an official said.
