Himachal Pradesh Industries Minister Bikram Singh on Friday said promoting investments in the textile sector is the need of the hour but inverted duty structure has been one of the important factors discouraging investments in this sector.
He made these remarks during the 46th meeting of the GST Council which was presided over by the Union Finance Minister Nirmala Sitharaman at New Delhi today and thee issues related to rate of GST on Textile were discussed in the meeting.
Singh stated that new investments were known to promote greater employment opportunities.
He was also of the view that the issue of tax rationalization should be dealt with holistically and requested the Council to consider extending GST Compensation till 2027.
The 45th GST Council meeting had recommended a uniform rate of 12 per cent for all textile items. The decision was taken to redress the inverted duty structure in the textile sector. The new rates were to become effective from 1st January, 2022.
The GST Council decided to defer implementation of the rate change from 1 January, 2022 for the textile sector. It decided to refer the issue of rationalization of tax rates in this sector to the Group of Ministers on rate rationalization so that the issue could be dealt with holistically. The Group of Ministers is expected to submit its report to the GST Council in February 2022.
The GST Council is likely to meet in the first week of March to decide on the report of the Group of Ministers.