The GST Council on Friday in a meeting with officials decided to defer hike in GST on textiles from 5 per cent to 12 per cent, sources told leading news media.
The matter will be discussed again in the next Council meet for future roadmap.
The GST rate hike on textiles from 5 percent to 12 percent was to come into effect from January 1. The Council members also discussed merging the GST tax slabs of 12% and 18% during the meeting, but, no final decision was taken on the same.
On December 30, several states demanded that the rate hike be put on hold on higher tax rate on textile products from January 1.
In the pre-budget meeting chaired by Union Finance Minister Nirmala Sitharaman, states like Gujarat, West Bengal, Delhi, Rajasthan and Tamil Nadu said that they are not in favour of a hike in Goods and Services Tax (GST) rate on textiles to 12 per cent, from 5 percent currently, with effect from January 1, 2022.