The textile traders are contending that the tax should be levied on readymade garments and not on yarn and cloth. The GST Council has categorised textiles under 5 per cent slab thus the Textile traders are on strike in several towns, particularly Surat, Amritsar, Jaipur, Karur and Erode, demanding roll back of Goods and Services Tax (GST) on their trade.
The Textile GST Sangharsh Samiti (TGSS) is planning a huge rally on July 8 demanding ‘No GST’ on fabrics. In Surat, textile traders, especially those dealing in man-made fibre (MMF) fabrics, are pressing for removal of GST on MMF fabrics.
In Amritsar, wholesale textile traders are on an indefinite strike demanding roll back of 5 per cent GST on unstitched clothes, including all kinds of fabric, blankets and shawls.
The Federation of Textile Traders of Amritsar (FTTA) has stated that local member of Parliament Gurjeet Singh Aujla has extended support to their cause and assured them that he would raise their demand in the next session of Parliament, which begins on July 12.
In Jaipur, wholesale cloth shops remained shut for the second consecutive day yesterday. Earlier, Rajasthan Cloth Traders Association (RCTA) went on a four-day strike from June 27-30 stating that the 5 per cent GST on clothes and saris is unjustified.
In Tamil Nadu, textile manufacturers are also on strike along with traders and merchants of yarn and fabrics. Power looms, dyeing, packing and processing units across textile hubs of Erode, Karur, Namakkal, Tiruppur, Palladam, Somanur and Coimbatore are protesting the imposition of GST on various stages of textile manufacturing.
Nearly 5,000 textile shops under the aegis of Erode Handloom Cloth Merchants Association are on strike seeking withdrawal of 5 per cent GST on textile goods. The weaving and knitting factories in Karur are on a six-day strike against the levy of 5 to 18 per cent GST on textiles.