Centre heeds to Telangana demand on rolling back GST hike on Textiles

In a victory of sorts to Telangana, the GST Council has decided to defer the tax rate hike on textiles from 5 per cent to 12 per cent. The new GST rate on textiles was scheduled to be implemented from January 1, 2022.

The hike to 12 per cent on the textiles met with a stiff opposition from Telangana Government and the Industries, Municipal Administration, Handlooms and Textiles Minister KT Rama Rao dashed off letters to the union Finance Minister Nirmala Sitaraman seeking its withdrawal immediately. Rama Rao has pointed out that the handloom weavers in the country would have no option but to launch another agitation akin to the one launched by the Farmers in



Delhi.

The decision to defer the GST rate hike on textiles was taken in the 46th GST Council meeting held in the national capital under the chairmanship of union Finance Minister Nirmala Sitharaman. GST Council has decided to defer the hike in GST rate on textiles (from 5 per cent to 12 per cent). The Council will review this matter in its next meeting in February 2022.

A similar demand of withdrawing the GST hike on Textiles was also voiced by the Gujarat BJP president CR Patil and union deputy minister Darshan Jardosh too. This prompted Rama Rao to point out that even the BJP leaders were against the GST hike and demanded its immediate roll back, which is now conceded to.