Textile sector 12% GST hike to hurt businesses seriously: Textile merchants and traders
23 December 2021, Mumbai:
Textile merchants and traders are worried about the impact of their business when the increased GST of 12% will come into effect from January 1 across the country and how their customers, particularly women, will respond.
The Central government has increased the GST levied on garments from 5 per cent to 12 percent. Nizamabad, Kamareddy, Armor, Bodan Banswada, Balakonda, Dichupally and Ellareddy Bhimgal along with mandal headquarters and villages across the erstwhile district have large luxury shopping malls as well as small textile clothing shops.
Out of total textile and garment business in the district, sale of clothes and other garments of women and adolescent girls accounts for 43 per cent.
Erstwhile Nizamabad district has a daily turnover of over 4 crore from the retail textile business. Out of this, Rs 3.5 crore comes from sale of saris and other ladies' garments.
Over the years, the textile business in the district had been in a sluggish stage due to the impact of the Covid epidemic.
Prices of cotton and other raw materials used in the manufacture of fabrics, especially silk saris, have tripled and prices of silk garments for festivals, weddings and other celebrations are going up sharply in recent times.
HANS INDIA (The news article has not been edited by DFU Publications staff)
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