India’s Finance Minister Nirmala Sitharaman recently rejected the proposal put forward by the Ministry of Textiles to defer the increase in Goods and Services Tax (GST) from the current 5 percent to 12 percent on fabrics and other textile products. As a result, GST rates will go up as scheduled with effect from January 1, 2022, from 5 percent to 12 percent on all types of fabrics, and on garments with retail value below Rs. 1,000. The GST rate on man-made fibre, however, will come down from 18 percent to 12 percent. The rates on cotton, cotton yarn and synthetic yarn will remain unchanged at 5 percent, 5 percent, and 12 percent respectively.