Will the appeal bear fruit ?:GST hike on textiles likely to be postponed, decision in today’s meeting

  • Gujarat had demanded cancellation of rate hike

As the GST Council meeting was about to take place, states including Gujarat had appealed to postpone the decision to increase the rate of GST on textiles from 5 per cent to 12 per cent. The increase is set to take effect on January 1. The 46th meeting of the GST Council is scheduled for today, December 31. The meeting is likely to postpone the hike in GST rates on textiles.

Meanwhile, Delhi Deputy Chief Minister Manish Sisodia on Thursday said the decision to increase the rate of GST on textiles from 5 per cent to 12 per cent was not appropriate. This increase should be reversed. Ordinary people will have to pay GST of Rs 120 if they buy cloth worth Rs 1,000.

We will oppose this price increase. It may be mentioned that the textile traders of Surat had appealed to the government to keep the rate of GST unchanged at 5% and to postpone the increase in the rate. The only agenda of the GST Council meeting to be held today is to reconsider the GST rate on textiles.

Deadline for filing GST return is 28 Feb. The
Central Government has extended the deadline for filing annual GST returns for the financial year 2020-21 by 2 months. This return can now be filed till 28th February. Annual GST return is mandatory for traders with a turnover of more than Rs 2 crore.