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Press Release

Date: December 31, 2021
Subject: GST Council Defers Proposed Textile GST Rate Changes to Maintain Status Quo
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Description:

The 46th meeting of the GST Council was held in Lucknow on 31 December 2021 under the chairpersonship of the Union Finance and Corporate Affairs Minister, Smt. Nirmala Sitharaman. In this meeting, the Council reviewed the proposal approved in the 45th GST Council meeting regarding changes in GST rates applicable to textiles. After deliberations, the Council recommended deferring the implementation of the proposed rate revisions in the textile sector. As a result, the existing GST rates on textiles were decided to be continued beyond 1 January 2022. This decision was taken in view of concerns raised by various stakeholders and States, and to allow more time for further examination of the potential impact of the rate changes on the textile industry, which is a major employment-generating sector. By maintaining the status quo, the Council aimed to provide stability and certainty to manufacturers, traders, and small businesses in the textile value chain, while keeping the issue open for reconsideration in a future meeting.

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