<h1>GST Council Delays Textile Tax Hike from 5% to 12%; Footwear Tax Increase to 12% Effective January 1.</h1> The GST Council has postponed the planned increase in the tax rate on textiles from 5% to 12% following requests from several states. The decision was made during an emergency meeting, but a similar request concerning footwear was not accepted. The current tax rates are 18% for manmade fiber, 12% for MMF yarn, and 5% for fabrics. A group of state finance ministers will review the textile tax rate and report back by February. Meanwhile, starting January 1, 2022, all footwear will be taxed at 12%, and a uniform 12% GST rate will apply to most textile products, excluding cotton.