Lagatar24 Desk
New Delhi, Dec.30: Several garment marketplaces in Delhi stayed closed on Thursday in protest of the national government’s proposed proposal to raise GST rates on textiles from 5% to 12% on January 1st.
Following the strike call, 64 small and medium markets in Chandni Chowk, Gandhi Nagar, Lajpat Nagar, Karol Bagh, Okhla, Shanti Mohalla, Pitampura, Jogiwada, and Rohini remained closed.
The proposed increase in the Goods and Services Tax (GST) rates on textile and readymade clothes will “end the industry,” according to Bhagwan Bansal, vice president of the Delhi Hindustani Mercantile Association.
According to him, clothing has already grown in price by around 30% due to rising raw material costs, and the increase in GST rates will exacerbate the problem.
We appeal the central government to take back the decision and establish a dialogue with traders on this. We will call an indefinite strike if this demand is not met,” Bansal told PTI.
Manish Sisodia, the Deputy Chief Minister of Delhi who also holds the finance responsibility, backed the traders’ walkout and said he would bring the dealers’ demand to the GST council meeting on Friday.
“Textile and garment traders are opposing the hike in GST rates. Their demand is legitimate. The Aam Aadmi Party government under the leadership of Arvind Kejriwal has always been in favour of keeping the tax rates low. I will put forth the demand of keeping the tax rates low on clothes in Friday’s GST council meeting,” he tweeted.
According to Brijesh Goyal, chairman of the Chamber of Traders and Industries (CTI), approximately one lakh textile and garment shops in the city closed their doors on Thursday in protest of the GST hike.
He explained that there had been no tax on clothing since independence, but that when the GST was implemented in 2017, a 5% tax on garments and textiles was applied.
“If 12 per cent GST is imposed on textiles, traders will not be left with the capital which will lead to closure of small factories and also increase tax evasion,” Mr Goyal added.
