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<h1>Textile GST rate increase deferred; GoM to review inversion, report by February 2022, refunds debate ongoing.</h1> The Council deferred the scheduled increase of GST on textiles from 5% to 12% (effective 1.1.2022) after representations highlighting adverse impacts on MSMEs, employment, handloom and natural fibre segments and fiscal concerns tied to cessation of compensation cess. The Fitment Committee and inter ministerial inputs had recommended correction of the inverted duty structure by aligning rates across fibre, yarn and fabric; Members asked for more data, stakeholder consultation and consideration of differentiated measures. The Group of Ministers on Rate Rationalization was tasked to report by late February/early March 2022.