GST Council meet on Friday: Textile price, obligation construction could also be key points

A dialogue on price rationalisation and inverted obligation construction for some items is prone to characteristic on the forty sixth assembly of the Goods and Services Tax (GST) Council on Friday. Some state finance ministers are additionally prone to take up the difficulty of the proposed hike in GST price on textiles to 12 per cent from 5 per cent efficient January 1, two state authorities officers stated.
The assembly, to be chaired by Union Finance Minister Nirmala Sitharaman, will likely be held a day after the pre-Budget consultations with state finance ministers on Thursday. The Group of Ministers (GoM) set as much as overview the present price slab construction underneath GST had deferred its closing assembly on November 27 to debate numerous proposals for price rationalisation and measures to shore up revenues. The GoM is now anticipated to instantly submit its report back to the GST Council, which can not mirror the considerations raised by some states over suggestions of main price tweaks by an officer-level fitment committee.
The officer-level fitment committee is learnt to have beneficial elevating of tax charges from 5 per cent to 7 per cent and 18 per cent to twenty per cent, for which some state finance ministers had raised considerations over impression of such main price modifications. Some states had cited considerations in regards to the inflationary impression of any such main price hikes, particularly within the aftermath of the pandemic.
The GST has 5 tax slabs: zero, 5 per cent, 12 per cent, 18 per cent and 28 per cent. A compensation cess, from 1 per cent to 290 per cent, is levied on demerit and luxurious items over and above the topmost price of 28 per cent.
The choice on price hike for textiles can be anticipated to be opposed by some states. Last week, Amit Mitra, the Principal Chief Advisor to West Bengal Chief Minister, had urged Sitharaman to roll again the proposed hike. He stated the brand new price construction would trigger closure of round 1 lakh textile models and losses of 15 lakh jobs nationally. Telangana Industries Minister KT Rama Rao too has urged the Centre to withdraw its proposed plan to hike GST charges.