GST to be implemented at 12% from 01.01.2022: FM Rejects Proposal of CIAT
Nirmala Sitharaman said on Tuesday that the government’s recent announcement on a uniform 12 percent goods and services tax (GST) for the textile and apparel sector was aimed at addressing the inverted duty structure that was causing companies to accumulate input tax credits. She did not share the industry’s concerns that this would result in higher finished product prices.
Finance minister Mrs. Nirmala Sitharaman rejects proposals from the textiles ministry and requests from CIAT (Confederation of All India Traders) for deferring the taxation increase from 5% to 12%. Henceforth from 01.01.2022, all fabrics and other textile products will have 12% GST.