GST hike from Jan 1; here is what will cost you more
Come January 1, apparel, footwear and fabrics, including blankets, tents and tablecloths, will get more expensive due to a uniform 12 per cent GST. The GST rate on apparel and footwear costing up to Rs 1,000 per piece has been increased from 5 per cent to 12 per cent. Autorickshaw rides booked via aggregators such as Ola and Uber will attract 5 per cent GST from January 1, 2022.
Finished goods such as apparel, footwear and textiles are set to get more expensive from January 1, 2022 with the Union Government increasing the GST on such items from 5 per cent to 12 per cent. Rates of textiles, including woven fabrics, synthetic yarn, blankets, tents as well as accessories such as tablecloths or serviettes, have also been increased from 5% to 12%. The GST rate on footwear (costing up to Rs 1,000 per pair) has also been hiked from 5% to 12%.
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Auto rickshaw rides booked through app aggregators such as Ola and Uber are also set to get more expensive in the new year. The Union Government had declared that it will levy a 5 per cent GST on auto rides booked online from January 1, ending an existing exemption. Auto rides taken from the streets will continue to be GST-free.
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Possible impact
Since unorganised sector accounts for over 80 per cent of fabric production in the country, raising the GST on fabrics to 12 per cent will hurt power loom and handloom weavers hard.
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-PTC News
