Despite concerns expressed by the industry, the government is unlikely to defer implementation of higher Goods and Services Tax (GST) on certain textile products, as the decision was taken by the GST Council.
The government is sticking to its decision to implement a uniform GST rate at 12% on manmade fibre (MMF), MMF yarn, MMF fabrics and apparel from January 1, 2022. The industry has opposed the rise in tax from 5%, citing higher compliance cost especially for the unorganised sector and MSMEs besides making poor man’s clothing expensive.
Source: a2ztaxcorp.com and a2ztaxcorp
