The Goods and Services Tax (GST) is being touted as the biggest tax reform in India since independence. A single tax will abolish the existing multinple taxes that differ from one state to another. Economists are predicting that the tax reform will change the way businesses are condcuted in India and will bring about only good things to the country. However, textile traders across the country are not convinced. From Jaipur to Erode, from Surat to Kolkata, textile traders are up in arms against the GST. They are not opposing the GST but the tax rate that is levied on the textile which they argue would ruin the industry.
The GST Council has imposed a 5 per cent on textile.
Cloth merchants observed state-wide bandh in Rajasthan to protest against imposition of 5 per cent sales tax on textiles under the upcoming GST regime. "The strike will continue till June 30 and future course of action will be decided after GST Council meeting, which is scheduled on June 30," Federation of Rajasthan Trade and Industry President Suresh Agarwal told PTI yesterday.
"The bandh was successful in Rajasthan against the Centre's decision to levy 5 per cent GST on textile. Due to the bandh, the business was affected" Om Prakash Taneja, president of the Cloth and Saree Traders Association said.
"We oppose the government's move. Textiles should be exempted from GST," he said.
Source: India TV Business Desk