The Indian textile industry finally breathed a sigh of relief: the increase in textile consumption tax from 5% to 12% was postponed due to various opposition!

The Goods and Services Tax (GST) Council meeting chaired by Indian Finance Minister Nirmala Sitharaman decided on December 31, 2021 to postpone the increase in the textile tax rate from 5% due to opposition from various states and industries To 12%.
Prior to this, many states in India opposed the increase in the tax rate of textile products and demanded a postponement of the tax rate increase. The matter was raised by the states of Gujarat, West Bengal, Delhi, Rajasthan and Tamil Nadu. These states stated that they do not support raising the goods and services tax rate on textiles from the current 5% to 12% from January 1, 2022.