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Confederation of All India Traders Ref No.: 3307/1/50 19th November 2021 Smt Nirmala Sitharaman Honble Minister for Finance Government of India New Delhi Dear Smt Nirmala Sitharaman Ji, Sub: Levy of 12% GST on Textiles The entire textile trade and industry is in shock on Governments decision of increase in tax on textile which is the second largest revenue generating commodity after agriculture. The textile trade in any case was badly hit by COVID-19, and still is strugg
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FAQ :
CAIT is protesting the increase in GST on textiles from 5% to 12%, calling it a 'most undesirable act' by the GST Council.
CAIT argues that clothing is a basic necessity like food, health, and education, which are either untaxed or taxed at lower rates. They find the 12% tax on textiles disproportionate.
The textile trade was badly hit by COVID-19 and is still struggling for survival, making the tax increase a significant setback.
CAIT requests the government to withdraw the notification increasing the rate to 12% and instead introduce a single rate of 5% without any value cap or category.
CAIT warns that the higher tax will increase the financial burden on end-users, badly affect small businesses, encourage tax evasion, hamper domestic trade, and adversely affect exports.
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