46th GST Council meeting defers the decision to change the rates in textiles
The GST Council's 46th meeting was held on 31st December 2021 in New Delhi under the chairmanship of the Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman. The GST Council has recommended to defer the decision to change the rates in textiles recommended in the 45th GST Council meeting. Consequently, the existing rates in textile sector would continue beyond 1st January, 2022.
During the press conference, the Union Finance Minister stated that the 46th GST Council meeting was called under emergency provisions with only two days notice. She further highlighted that the meeting was brief meeting, with the sole topic on the agenda being the increase in the GST on textiles.
The FM also said that the Gujarat FM had written a letter on 29th December 2021 requesting to reconsider the 45th GST Council meeting's decision to correct inversion in the tax structure of the textiles sector.
As a result, the Council resolved to postpone the increase in the GST on textiles from 5% to 12%. The Council also told the Group of Ministers that they have to include the GST rate on textiles in their study and submit it by February 2022.
The FM clarified that the GST hike on footwear was not on the Council's agenda, and no discussion happened in this regard. Hence, the new GST rate of 12% will apply to footwear from 1st January 2022.
The FM clarified that the next GST Council meeting will be held at the end of February 2022 or early March 2022 in which the committees recommendations and report will be discussed.
