The 46th Goods and Service Tax (GST) Council meet will be chaired by union finance minister Nirmala Sitharaman on Friday (December 31) in Delhi at 11:00 AM.
In the last meeting, the GST Council had decided to correct the inverted duty structure on the textile sector by increasing the rate from 5 percent to 12 percent and on footwear – below Rs 1,000 per pair – from 5 percent to 12 percent. It is understood that the agenda of the upcoming meeting could be reworking these duties that were hiked on textiles and footwear.
The trade associations, apparel manufacturing associations, footwear associations across India have been writing to the government to rethink the particular decision and to defer if possible because the levies will kick in from January 1 and it is going to impact the industry substantially. However, Delhi deputy chief minister Manish Sisodia and GST Council Member Mauvin Godinho have opposed the GST hike on textiles.
Apart from this, states are facing the heat as they are now supposed to put forward their state-specific budgets. So that is something that will also likely be discussed in the upcoming GST Council meeting.
Watch the accompanying video to know what they had to say.