New Delhi: The GST Council has frozen the tax hike on textiles and footwear. The decision to increase the tax from 5 percent to 12 percent has been put on hold. Indications are that the move follows opposition from the states. The decision was taken at the GST Council meeting held today.
The next GST Council meeting will discuss raising the tax on textiles. The GST Council has taken a crucial decision ahead of the new tax coming into effect on January 1. Several states demanded at the council meeting that the tax increase be frozen.
Earlier in the day, Finance Minister Nirmala Sitharaman had held a meeting with state finance ministers ahead of the budget. The West Bengal finance minister had said that if the tax hike was implemented, about one lakh industries would have to close down. About 15 lakh people will lose their jobs. Industry groups also opposed the decision.
