Textile traders across the country will go on a strike, opposing the implementation of GST on textiles. A rally is also likely to be organized on June 30, 2017. As per textile associations lakhs of organised and unorganised traders associated with the textiles will be affected badly with the implementation of GST.

Even Haryana’s textile traders have started a three-day strike from Tuesday by closing down their business for 72 hours. The government, on its part, is ready to remove doubts by holding discussion on GST. Around 35,000 textile shops in Telangana are expected to remain close while nearly 70,000 textile establishments in Surat have been shut since June 24, 2017, declared Telangana State Federation of Textile Associations President Ammanabolu Prakash.

Textile traders also held marches in protest of the Centre’s decision to levy 5 per cent goods and services tax (GST) on textiles and 12 per cent on readymade garments. The price of textiles may rise by 8-10 per cent Further, talking about the exempted category textile traders across the state, Prakash says, textile traders across the state were supporting the nationwide bandh as fabrics at present came under the exempted category. The 5 per cent GST that it would attract can complicate matters for those in the trade, pointing to the compliance hassles as well as the need for more working capital.

According to Telangana State Federation of Textile Associations the GST Council had promised it is not going to tax textiles. Contrary to their promise, they have imposed a 5 per cent tax on the commodity. On apprehensions of the trade Prakash says fulfilling the requirements is not going to be easy for traders as they operate on thin margins and there is lack of familiarity with computers. GST compliance would be challenging and add to their cost and the traders have not registered under GST, he added.