The GST Council may defer the proposed hike of goods and services tax rate on clothing a footwear below Rs 1,000 after an all-round criticism of its decision that could lead to mass job losses and closure of small units.
The hike was to come into effect from January 1.
The next meeting of the GST Council will be held here on Friday (December 31) in which it may consider rolling back its decision, sources said. The Council may also take up the issue of rate rationalisation on other goods and services.
The Council had in its meeting in September had decided to increase the GST levy on apparel and clothing and, footwear up to to Rs 1,000 to 12% from the existing 5%.
The move was taken to correct the inverted duty structure on these items.
The inverted duty structure arises when taxes on final products are lower than taxes on inputs.
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