Industry And Cluster | News & Insights

GST hike on textile and clothing: Indian Trade bodies gear up for mega agitation

Published: November 27, 2021
Author: Manali bhanushali

Terming this hike unjustified, the Confederation of All India Traders (CAIT) has decided to launch a mega agitation across the country against such arbitrariness.

The agitation will be led by Delhi Hindustani Mercantile Association and Federation of Surat Textile Association (FOSTA) under the umbrella of CAIT. Trade organisations of all types of trade, workers, and employees associated with them will also participate in it.

To decide about the future strategy of the agitation, the CAIT has convened a video conference on 28 November with the leaders of textile and footwear trade across the country, which will also be joined by prominent trade leaders of all States.

BC Bhartia, National President and Praveen Khandelwal, Secretary General, CAIT said that in the cotton textile industry there was no inverted tax structure, then why fabric and other cotton textile goods were brought under the 12 per cent bracket.

Even in the man-made textile industry, at the stage of manufacturing garments, sarees and all types of made ups, there was no inverted tax issue. Without having any understanding of the stages of the textile industry such a harsh decision will be a regressive step.

They also said, “Instead of simplifying and rationalising the GST tax structure, the GST Council has made it as “most complicated GST law in India over the world” and much against the GST structure shown to CAIT by the then Finance Minister Arun Jaitley.”

“Roti, Kapda & Makaan are three basic things of life. Bread has already become very expensive due to high rise in prices, buying a house is beyond the reach of a common man and the cloth, which was accessible, has also been made expensive by the GST Council.  After all, what kind of treatment is being done to the common man of the country. In this matter, not only the Central Government but also the State Governments are completely guilty because these decisions have been taken unanimously in the GST Council and no one has opposed such an irrational decision. They have demanded that the increased rate of GST on clothes and footwear should be withdrawn immediately. They said that retail trade in the country has already been destroyed due to Covid and now that the business was resuming on track from this year, the increase in the GST rates will be last nail in the coffin of the trade,” added both the leaders.

Federation of Hosiery Manufacturers Association of India (FOHMA) has also said that the proposed change in the rate from the existing 5 per cent to 12 per cent is going to significantly increase the prices of apparels now costing below Rs. 1,000.

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