Withdraw plan to hike GST rate on textile, apparel items: Telangana Minister to Centre

Telangana Industries Minister KT Rama Rao on Sunday urged the Centre to withdraw its proposed plan to increase GST rates from 5 per cent to 12 per cent on garments and fabrics from January 1, 2022. In a letter to Union Textiles Minister Piyush Goyal, Rama Rao said for the past two years, the handlooms sector has been going through a difficult phase due to coronavirus pandemic, an official release said here.

"At this juncture, revising the GST (rates) from the current 5 per cent to 12 per cent would serve a death blow to the industry," said Rama Rao.

After agriculture sector, textiles and handlooms sector provide highest employment in the country. Considering the current scenario, the need of the hour was to extend additional advantages and incentives to the sector, he said adding the decision to increase GST rates on textiles and handlooms is not wise.


"The current decision to impose additional seven per cent GST on the handlooms would leave the sector crippled. Telangana produces world-class handlooms and weavers are worried due to the central government's decision to hike GST rates," the Telangana Minister said.

Rao further demanded rollback in GST hike on textile products, or atleast retain handlooms at the earlier GST of 5 per cent.