The GST council on Friday decided to postpone the rate hike on textiles from 5% to 12% and to consider the matter at the next meeting in February.
Posted 02.01.22, 01:46 AM
About 20,000 clothing wholesalers closed their stores until noon in Jharkhand on Friday to protest the Centre’s decision to increase the goods and services tax on textiles, although the decision was postponed during a GST board meeting.
“We have heard that the GST council has decided to postpone the rate hike on textiles from 5% to 12%. But we want to push for the decision to be overturned, not for the postponement, and to move forward with our turmoil scheduled for Friday. All the clothing wholesalers lowered their shutters until noon and all the traders put on black badges, ”said Prakash Chandra Arora, President of Jharkhand Thok Vastra Vikreta Sangh.
Arora said no Covid protocol was flouted during the unrest and no one was forced to keep their stores closed.
“Any increase in the GST on textiles will cause fabric prices to increase, which would directly affect the masses, especially the poor and the middle class, who are already reeling from inflation and unemployment during the pandemic. We want the government to announce the cancellation of any plans to increase GST rates on textiles, ”Arora said.
The GST council on Friday decided to postpone the rate hike on textiles from 5% to 12% and consider the matter at the next meeting in February.
Industry and other states opposed increasing the GST to 12 percent from Jan. 1, citing higher compliance costs for the unorganized sector and MSMEs and saying it will make ” expensive male clothes ”.
“We want to ask the Prime Minister and the Minister of Finance to investigate the textile sector and the subsequent effect that the rise in the price of clothing will have. Due to Covid-19, people are facing financial problem and employment opportunities have declined as well. The textile industry employed a large number of people directly and indirectly. If prices increased, the textile sector would also go into recession, ”Arora added.
He said the future course of the unrest would depend on the GST council’s decision in February.
Meanwhile, Jharkhand Finance Minister Rameshwar Oraon said he did not attend the GST board meeting in Delhi because he did not receive the agenda on time. .
“I decided not to attend the GST board meeting because my office would be following the agenda on Thursday morning. Without going through the agenda, there was no point in attending the meeting. The finance ministry should send the meeting agenda well in advance, ”Oraon said.