A number of cloth markets across Ahmedabad will observe a day-long shutdown on December 30, to protest the proposed hike in Goods and Services Tax (GST). Some 45,000 clothing retail and wholesale shops will remain shutting on December 30.
From January 1, all apparel in addition to textile and a few other raw materials will attract 12 percent GST, causing an effective increase in the price of apparel. The move, according to industry players, will particularly affect price of affordable clothing priced below Rs 1,000. Clothing above Rs 1,000 already attracts 12 percent GST.
As part of the day-long protest, markets including Maskati Cloth Merchant’s Association, New Cloth Market, Panchkuva Cloth Merchants’ Association, Sindhi Market, VIP Market, Karnavati Market 1-2-3, Ratanpol Cloth Merchants’ Association and Revdi Bazaar will remain shut.
“Till 2017, the textile industry did not attract any taxes. Raising taxes at a time when traders are barely recovering from the after-effects of Covid is outrageous. This will not just increase our working capital needs but also dent demand in the longer run,” said Gaurang Bhagat, President of Maskati Cloth Merchants’ Association in Ahmedabad.
“The demand has already taken a hit and, in the longer run, this will further impact production which in turn will affect employment. Textile is a labour-intensive industry and provides employment to a lot of people. This will all be affected with surge in tax rates,” Bhagat added.
Industry estimates suggest that textile production will be impacted by 30 percent. A demonstration also performed in the evening of 29-12-2021.
