Mumbai: The proposed increase of 7% in the GST rates on garments has been postponed due to huge outrage in the textile trade and industry sector across the country. This has brought great relief to the textile traders across the country. Along with this, consumers will also get relief. A decision on this was taken unanimously in a meeting of the GST Council chaired by Finance Minister Nirmala Sitharaman in New Delhi on Friday.
According to sources, several states including Gujarat, Tamil Nadu, Maharashtra, Uttar Pradesh, West Bengal, and Delhi proposed suspension of the hike in the meeting. Which the Finance Minister gave his assent. Textiles Minister Piyush Goyal was also not in favor of the increase.
Protests were happening across the country
Significantly, with effect from January 1, 2022, the GST rate on all types of clothing across the country was being increased from 5% to 12%. Which was opposed by the textile traders across the country. All industry-trade organizations including the trade federation Confederation of All India Traders (CAIT), Clothing Manufacturers Association of India (CMAI), Hindustan Chamber of Commerce, Bharat Merchants Chamber, Mumbai Merchants Mahajan were opposing it. The increase in taxes would make clothes more expensive and the tax system would trap traders’ capital and reduce their margins. That is why the traders were opposing it.
