InvestorQ : Why does the textile industry want reduction in GST rates?
Niti Shenoi made post

Why does the textile industry want reduction in GST rates?

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ishika Banerjee answered.
5 months ago
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It is not a rate cut that the textile industry is asking for. In the previous meeting, the Council had announced hike in GST on textiles from 5% to 12% effective from 01-January 2022. This was done to address the issue of inverted duty structure in the textile sector. However, this has come in for a lot of criticism.

The objections came in the light of the stiff competition that Indian textiles are already facing from countries like Vietnam and Bangladesh. It is estimated that this rate hike may result in 15 million job losses in textile industry, although it is not confirmed. The GST Council is expected to defer this decision for now.

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