NASHIK: The GST Council had decided to increase the GST on clothing and footwear from 5 per cent to 12 per cent from January 1. The decision caused outrage among textile and footwear traders across the country. The GST Council has decided to postpone the hike in garment prices.
This is welcome and the Maharashtra Chamber has demanded the cancellation of hike not only in the textile industry but also in the footwear industry. Maharashtra Chamber of Commerce President Lalit Gandhi has welcomed the decision of the GST Council to suspend the hike in textile prices at its meeting on December 31.
The Maharashtra Chamber of Commerce had made representations to the Union Finance Minister, Textile Minister, and all the member finance ministers of the GST Council in all the states of the country.
Gandhi said that Union Textiles Minister Piyush Goyal had taken the initiative in this regard and had made a significant contribution in securing the moratorium. However, at the same time, a decision on the industry is expected to be taken as the price hike on footwear will come into effect from January 1, said Lalit Gandhi.
The 46th meeting of the GST Council, chaired by Union Finance Minister Nirmala Sitharaman, postponed the hike in the textile industry but did not discuss the hike in footwear. It was decided to send the proposal for a tariff hike in the textile industry to the GST Rate Restructuring Committee. The committee is expected to submit its report by February.