GST Council Defers Rate Hike On Textiles: Buggana Rajendranath

GST Council Defers Rate Hike On Textiles: AP Fin Min Buggana Rajendranath - Sakshi Post

NEW DELHI: Andhra Pradesh Finance Minister Buggana Rajendranath Reddy said that the  Goods and Services Tax (GST) Council has decided to defer the hike in the tax rate on textiles from 5 percent to 12 percent as several state governments raised objections.

Speaking to reporters on Friday after the 46th GST Council meeting chaired by Union Finance Minister Nirmala Sitharaman concluded, he informed that several states including Andhra Pradesh requested the Council to take back the earlier decision to increase the GST on textiles to 12 percent which was supposed to come into effect from January 1 2022, Buggana said.

The Finance Minister said that there was still no clarity on the rate of GST that would be imposed on nylon and cotton fabric as well as man-made and natural textiles. There were also no estimates available with the Council on a possible increase in the refund if to be given, he said.       

Stating that any hike in GST on textiles will impact Andhra Pradesh the most, Buggana Rajendranath said it is because there are about 3 lakh handloom weavers and most people wear cotton clothes unlike nylon in other states. The GST Council was also requested to take a call on increasing the GST on textiles after conducting a thorough study and assessing the data, he added.        

With the Union Budget for 2022-23, scheduled to be presented in Parliament on February 1, 2022, the AP Finance Minister had appealed in the pre-budget meeting to approve the revised estimates on Polavaram. He said the cost of Polavaram has increased due to the new land acquisition law. He had also asked for funds for the Duggarajapatnam port, Kadapa steel plant, and Polavaram project in the coming budget.

He sought for a KBK had sought to give a package to the backward areas, clear the Nadikudi-Srikalahasti, Kadapa-Bangalore, Kotipalli and Rayadurg railway lines, as well as other pending railway projects.

He said the Home Secretary would address the pending issues of the AP State Re-organisation Act -2014 at a meeting on January 12. The Union Home Secretary had spoken to officials from the Prime Minister's Office on the pending issues at the Southern States Council meeting, he informed.

Also Read: Nirmala Sitharaman Chairs Pre-Budget Consultation With Finance Ministers of States

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