CBIC notifies GST Rate hike from 5% to 12% on Fabrics, Apparel, Footwear w.e.f. Jan 2022
The Central Board of Indirect Taxes and Customs notified the hike in GST rate from 5% to 12% on Fabrics, Apparel, and Footwear w.e.f. January 2022. The objective behind the proposed increase is to correct the problem of Inverted Duty Structure faced by a small segment of the textile value chain as discussed in the 45th meeting of the Goods and Service Tax (GST) Council.
he GST rate for Woven fabrics, Sewing thread of man-made filaments, whether or not put up for retail sale, Synthetic filament yarn (other than sewing thread), not put up for retail sale, including synthetic monofilament of less than 67 decitex, Artificial filament yarn (other than sewing thread), not put up for retail sale, including artificial monofilament of less than 67 decitex, Knotted netting of twine, cordage or rope; made up of fishing nets and other made up nets, of textile material.whether or not with accessories, for making up into rugs, tapestries, embroidered tablecloths or serviettes, or similar textile articles, put up in packings for retail sale, etc has been increased from 5% to 12%.
Further, the GST rate on Article of Apparel of any value has been increased to 12%, however, earlier the GST Rate was 5% for sale value upto Rs 1000 per piece, For Footwear of any value, the GST rate has been hiked to 12% which was earlier 5% for sale value upto Rs 1000 per pair.
