Textile trade left to raise GST to 12 per cent

- Antenna: Vivek Mehta

- Textile traders in Ahmedabad, Surat and Saurashtra are in a mood to fight aggressively, increasing government tensions.

The Goods and Services Tax on readymade garments has been increased from five per cent to twelve per cent. Retailers and wholesalers have rallied to protest the government's decision. Textile traders and manufacturers are in trouble over the government's decision to impose 12 per cent GST on textile products at a time when the government has announced the withdrawal of all the three laws to quell a year-and-a-half agitation of farmers over the results of the Assembly by-elections. With the decision of the merchant alum to go left against the BJP's decision, there has been a break for the BJP. Ahmedabad traders have also protested against the central government's decision to increase GST. Increasing GST will bring textile trade in ICU. Considering that the trade is operating on a six-month loan, their huge capital tax will be stuck. So the whole business of this textile will be in the hands of the people of certain com- munities who have done blatant wrong in the textile trade.

They are punishing the traders and the people for being loyal to the BJP by imposing a tax burden on them. So buying clothes for the poor will cost seven per cent more. The textile and textile traders and manufacturers are preparing to fight the government in the same way that the farmers have been agitating against the three laws to oust the Prime Minister. There is strong opposition from traders, especially readymade garments. Hitesh Sanghvi, vice-president, Junagadh Cloth and Readymade Garment Assoc. As a result, the plight of retail traders and manufacturers will increase. Today, Rs. If a woman who took the construction in 2000 comes back in two days, she will have to pay Rs.210 for the same construction. This will have a direct effect on the credibility of the traders. This will have a devastating effect on the readymade business. The maths of readymade garments in the pipeline will also change with a 7 per cent increase. The GST rate has been increasing from 5 per cent to 12 per cent for the last two and a half months, so hosiery traders managed to make huge profits by selling large quantities of goods. The business of small traders will come to an end.

In the second quarter, the whole business is likely to fall into the hands of a certain class of people with the mindset of blatant theft. Those who used to steal even in 5% will steal more when 15% tax comes. Prakash Kapadia, president of the Gujarat Merchant Chamber, an agitator who has been fighting for the government and small traders on the issue of Oktroy, says it is not justifiable to suddenly increase the GST on household items from 5 per cent to 12 per cent. Manufacturers, like traders, suffer. The central government has hiked the rate of GST on textiles by seven per cent to Rs. It has paved the way for additional tax revenue of Rs 30,000 crore. Smaller consumers will have to pay seven to ten per cent more on the purchase of clothing. Opposing the central government's decision, Saurashtra traders say bread, clothing and housing are basic necessities. It is the duty of the government to see that it does not become expensive. But the people whose king is a merchant become beggars. Traders opting for composition in GST will have to pay 12.5 per cent GST under the new 18 per cent system. As per the rule, annual Rs. Traders with a turnover of less than Rs 50 lakh have the option of getting relief from all the hurdles, including filing a tax return by filing a GST of 1% GST. Small traders who resort to this option will have to pay 12.5 per cent tax instead of 15 per cent. He will not get any refund from the 15% he paid when he bought the goods.