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GST council to address rates for garments, textiles

At its upcoming meeting, the GST Council plans to address the tax rates for sectors including textiles and readymade garments in order to address the inverted duty structure where tax rates on raw materials are higher than the finished products they are used to make.

The GST Council will revaluate the tax rates on a range of items including textiles and readymade garments. The council will also address operational glitches on its GST Network portal and seek a resolution plan from digital technology firm Infosys which won the contract for managing back-end online GST operations in 2015.

The meeting will also see officials address the current inverted duty structure faced by the mobile phone sector and will consider increasing GST on mobile phones to 18 percent from the current rate of 12 per cent. If the council moves ahead with the GST increase, mobile phone prices are expected to increase.

Other matters that the meeting will address include deferment of e-invoicing and QR code benefits as well as the possibility of an exemption of certain industries from e-invoicing. The GST Council could also defer the new return form which was scheduled to come into effect on April 1.


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