Farmers Movement Archive

Ludhiana | Council defers hike in GST; garment traders rejoice

Hailing it as a ‘New Year’s gift’ for the sector, the textile and garment traders in the industrial hub of the state heaved a sigh of relief over the decision taken by the GST council on Friday to defer the increase in GST rate on fabrics, textile from 5 to 12 percent.The sector was exasperated when the government had earlier notified that the increased rates will be applicable from January 1, 2022. The manufacturers and traders said the hike in the tax rate would have not only impacted the business at large, the customers would also have been at the receiving end. The prices of the end products would have increased by around 20 percent, that too when the public is dealing with financial constraints amid pandemic.Traders bid revocation of notificationThe traders further demanded that after deferring the hike, the union government should permanently revoke the earlier notification as yet fear looms over the industry that the government can again increase the rate any time in future.Punjab Cloth Merchants Association (PCMA) president Sonu Nilibar said “The decision to defer the hike in tax rate is appreciable as the industry would have suffered a lot due to this decision. The production cost would have increased and ultimately the customers had to suffer as the cost of garments including ‘saree’ would have increased by around 20 percent. Traders and industrialists from across the country were mounting pressure on the government, who has finally paid heed to the problem,” said Nilibar. The hosiery traders in the hosiery hub of the state said the business is already moving through slump due to the ongoing pandemic and the hike would have pushed the sector on the verge of closure. Ludhiana Woollen Manufacturers Association and Knitwear Club president Darshan Dawar said, “The hike in the GST rate would have proved to be the final nail in the coffin as the sector has already been struggling due to the slump in the market amid pandemic. The purchasing capacity of the customers has already been reduced and the sector is relieved with the decision to defer the hike.”Members of Punjab Pradesh Beopar Mandal also appreciated the decision taken by the GST council. General secretary Sunil Mehra said the decision will give a boost to the trade. Some condemn the moveMeanwhile, a section of the industry also condemned the union government for unnecessarily triggering fear in the market.Condemning the move to notify the hike earlier and deferring the decision later, general secretary of the Knitwear and Textile Club Charanjiv Singh said, “It is not the first time that the union government has caused unnecessary panic in the market. It had done a similar experiment with the farmers as well, but had to withdraw the controversial farm laws at the end. Similarly, it had created panic by notifying a hike in GST rate for garments, which is unjustified and could have destroyed the hosiery industry.”

Hindustan Times

01-01-2022

Chandigarh