Textiles continue to be taxable at 5% beyond 1st January 2022: 46th GST Council Meet


Quick Summary
The 46th GST Council Meeting has decided to postpone any changes to the Goods and Services Tax (GST) rates for textiles. This means the current 5% GST rate will continue beyond January 1st, 2022. The issue has been referred to a rate rationalisation committee for further review, with a report expected by February.

Recommendations of the 46th GST Council Meeting

The GST Council’s 46th meeting was held today in New Delhi under the chairmanship of Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman.

Textiles Remain at 5  GST After 46th Council Meet

The GST Council has recommended to defer the decision to change the rates in textiles recommended in the 45th GST Council meeting. Consequently, the existing GST rates in textile sector would continue beyond 1st January, 2022. As such, Textiles will continue to be taxable at 5% beyond 1st January 2022.

FM Nirmala Sitharaman has also said that the issue related to GST rate on textile will be sent to the rate rationalization committee which will submit a report by February.

As such, the FM has retained the status quo and has not gone to 12% from 5%. Textile was the only issue of discussion in this emergency GST Council Meeting.

FAQ :

The council decided to defer the decision to change GST rates in textiles, meaning the existing 5% rate will continue beyond January 1st, 2022.

No, textiles will continue to be taxed at 5% GST beyond January 1st, 2022.

The meeting was chaired by Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman.

The issue will be sent to the rate rationalisation committee, which is expected to submit a report by February.

Textiles were the only issue discussed in this meeting.




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Finance news reporter covering taxation, GST, income tax, business compliance, and economy updates. I simplify complex financial topics into easy-to-understand articles for professionals, taxpayers, and business owners on leading finance and tax platforms.

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