GST Council Meet Today: Delhi Govt To Oppose Increased GST Rates On Textile

Delhi Finance Minister Manish Sisodia will also demand withdrawal of the increased tax on textiles in the meeting.

Delhi Finance Minister Manish Sisodia | File Image

New Delhi: Meeting of the GST Council is scheduled to take place today where the rationalisation of GST rates will be discussed. The meeting will be held under the chairmanship of Finance Minister Nirmala Sitharaman. While discussion will be held on some important points in the meeting, the Delhi government has decided to strongly oppose the increased tax on clothes. 

Delhi Finance Minister Manish Sisodia will also demand the withdrawal of this increased tax in the meeting.

Sisodia said on Thursday that the “increased tax on clothes will affect the business of small traders and will also put a burden on the budget of the common man. Therefore, the Kejriwal government will always fight for the rights of small traders and the common man.”

He said that the textiles traders are opposing the increased GST rates on textiles from 5 per cent to 12 per cent by the Centre. Sisodia said that the Delhi government under the leadership of Arvind Kejriwal has always been in the favour of keeping low tax rates. He targeted the Central government and said that it has continuously worked to break the back of the people by increasing taxes. 

Among other things that will be discussed in this meeting, a report by a committee of ministers of states on the rationalisation of GST rates will also be discussed. Apart from that, in this face to face meeting, reforms in the inverted duty structure will also be discussed. 

The Group of Ministers (GoM) concerned with rate rationalisation will submit their report to the council. The committee has reviewed items under a reversed fee structure to help reduce refund payments. In addition, the fitment committee, comprising of tax officials from the states and the Centre, has made several major recommendations to the GoM regarding changes in slabs and rates and the removal of items from the exemption list. Currently, the GST rates are 5, 12, 18, and 28 per cent.

At the same time, cess is also levied on high slabs on luxury and disadvantaged items. The GST Council will also consider the demand for amalgamation of 12 and 18 per cent slabs and removal of certain items from the category of exemption. This will balance the impact on revenue due to the realisation of slabs.