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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 Gov
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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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