City businessmen into textiles and garments have heaved a sigh of relief after the GST Council, in its meeting held recently, and did not hike the rate of 5 percent GST applicable on some fabrics and garments costing below rs. 1,000. Earlier, there were hints from the central government that the 5 percent slab of GST would be abolished, and the minimum GST on fabrics and garments would be 12 percent. Welcoming the decision, Knitwear Club finance secretary Harish Kairpal said, “We are thankful to the GST Council for not going ahead with the proposed hike in the rate of GST on certain fabrics and garments up to rs. 1,000. Had the GST been hiked to 12 percent, it would have destroyed the textile and garment manufacturers, who are already struggling to cope with the current scenario, where there is a huge drop in demand, both locally and internationally. We also request the union government to bring out a package for our industry to face this recession, which is getting worse day by day.”
