The GST Council's 46th meeting is taking place in the country's capital, Delhi, and is being chaired by Finance Minister Nirmala Sitharaman. The higher GST rate on textiles, if sources are to be believed, can be refunded. It can be brought back to 12 to 5%. If this happens then the common man will get the direct benefit. The meeting is chaired by the Union Finance Minister. The finance ministers of the states also participated in this meeting.
According to the information received from the sources, many big decisions can be taken in the meeting of the GST Council. The decision on the increasing GST rates on the most important clothes and shoes is expected to be postponed. Along with rationalizing the GST rates, there can be a discussion on reducing slabs as well. Apart from this, the GOM i.e. Group of Ministers made on GST rates will submit its report. The clothing and footwear industry has been against the GST Council's decision taken in September. In this meeting, it was decided to correct the duty structure by increasing the GST rate on clothing and footwear from January 1.
5% GST is charged on shoes up to Rs 1000. At the same time, talking about clothing, the rate of GST on manmade fibre, yarn and fabrics is currently 18%, 12% & 5%. Like shoes, clothing worth Rs 1,000 attracts a GST of 5%. The rate of GST on synthetic yarn has been changed to 12%. But natural yarn like cotton, silk, wool yarn attracts a tax of 5%.
Minister of State for Finance Pankaj Chaudhary had told in the winter session of Parliament that from April 2021 to December 7, 2021, the total income of the central government was Rs 7.39 lakh crore. This includes a corporate tax of Rs 3 lakh 63 thousand crores, personal income tax of Rs 3 lakh 61 thousand crore and other income tax of Rs 15 thousand 375 crore, which includes securities transaction tax i.e. STT. The net income tax collection affected by the shutdown in the financial year 2021 was Rs 9.45 trillion, according to the Minister of State for Finance. However, in the year before the Covid, i.e. FY 2020, the collection was Rs 10.51 trillion.
Whereas in the financial year 2019, this collection was Rs 11.38 trillion. Let us tell you that about four months are left for the end of this financial year. The income tax collection till December 7 was around 80% of the full-year collections of FY 2011 and 70% of FY 2010. The GST collection in November was Rs 1.32 trillion. This figure is the second-highest not only this year but since the introduction of the tax in the country.