Garment traders in Delhi shut shops against proposed GST hike on textiles

Delhi Deputy Chief Minister Manish Sisodia, supported the strike by traders and said he will put the demand of traders in Friday's meeting

Several markets dealing with garment business in Delhi remained shut on Thursday in protest against the central government's proposed move to hike GST rates on textile from existing 5 per cent to 12 per cent from January 1.

Sixty-four small and medium markets of Chandni Chowk, Gandhi Nagar, Lajpat Nagar, Karol Bagh, Okhla, Shanti Mohalla, Pitampura, Jogiwada, Rohini among others, remained shut following the strike call.

Bhagwan Bansal, vice president, Delhi Hindustani Mercantile Association said the proposed hike in the Goods and Services Tax (GST) rates on textile and readymade garments will “finish the business” and also burn a big hole in common man's pocket.

He said clothes have already become expensive by about 30 per cent due to increased cost of raw materials and the hike in GST rates will further impact the business.

“The Centre's proposal to hike GST from 5 per cent to 12 per cent on textile and readymade garments from January 1 will adversely affect the business. Small traders will literally be finished.

“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.

Delhi Deputy Chief Minister Manish Sisodia, who also holds the finance portfolio, supported the strike by traders and said he will put the demand of traders in Friday's GST council meeting.

“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.

Brijesh Goyal, chairman, Chamber of Trader and Industries (CTI) said nearly one lakh shops related to textile and garment business in the city shut shops on Thursday in protest against the GST hike.

He said since independence, there was no tax levied on clothes, but when GST was introduced in 2017, 5 per cent tax was imposed on garments and textiles.

“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,” Goyal added.

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