GST rates not to be revised unless there is anomaly: CBEC

GST rates will not be revised unless there is an anomaly or the rates are unjustified, CBEC Chairperson Vanaja Sarna has said.

Her comments came in the wake of textile traders’ demand for lowering five per cent GST on textiles.

“It is an issue that has snowballed but it is not something which cannot be settled... The issue is that textile sector is taxed for the first time. So anybody who comes into the net would feel the pinch,” Sarna said at a CII event here today.

Yesterday,

traders in Surat had called off their two-week-long strike against five per cent GST following the Centre’s assurance to look into their demand for rollback.

She further said: “Unless there is something not fully justified. ..unless there is an anomaly, I don’t think there is a reason to look at any rates at the moment.”

The Central Board of Excise and Customs (CBEC) has received representations from textile traders and is looking into their demands, Sarna said.

She said the textile industry will have issues relating to GST rates, laws and rules and there is still time for the industry to present its wish list as July 1 was not the end date.

But, it would not be possible to meet the demand for GST rate reduction unless there is an anomaly, or there is a need for correction, or something has been left out.

“July 1 doesn’t close everything and the kind of fitment of commodities that has taken place is kind of doing five budgets in one,” she said.

GST was rolled out on July 1 and has four-tier tax slab of 5, 12, 18 and 28 per cent. Over 1,200 goods and 500 services have been fit into these tax slabs.