New Delhi: In view of the growing resentment in the textile trade-industry sector across the country, the Modi government is reconsidering the proposed increase in the GST rate on clothing by 7% and it is possible that It will be announced to postpone it before January 1.
Due to the assembly elections in 5 states including Uttar Pradesh, Punjab next year, there is increasing pressure on the Modi government to withdraw this proposed increase, because the number of textile traders in the country is in crores and the growing resentment in this big vote bank can cause big damage to it in the upcoming assembly elections, especially in Uttar Pradesh. Therefore, on the lines of agricultural laws, the decision to increase GST on cloth can be canceled or postponed. However, for the time being, the chances of postponement are more visible.
Outrage among textile traders across the country
According to sources, in the name of tackling the problem of GST refund in the textile industry, on the advice of the 33-member GST Council, Finance Minister Nirmala Sitharaman has announced to increase the GST rate from 5% to 12% on all types of clothes since last month. Since then its protest started across the country and now this protest is increasing. There is increasing resentment among crores of traders and entrepreneurs associated with the textile industry. This anger is being seen in every textile market of the country including Mumbai, Bhiwandi, Ichalkaranji, Indore, Surat, Ahmedabad, Varanasi, Kanpur, Bhilwara, Ludhiana, Coimbatore, Tripura. In view of this protest, the Modi government is trying to postpone the increase in GST to avoid possible losses in the elections.
Goyal, Darshana, Pawar are not in favor of growth
Union Textiles Minister Piyush Goyal and Minister of State for Textiles Darshana Jardosh are not in favor of tax hike. Surat, which is the biggest textile market in the country, and Darshana Jardosh, who is a member of Parliament from Surat, is facing the most opposition. Piyush Goyal is also not in favor of a hike and wants to maintain the status quo in GST rates. Goyal had told the traders who went to meet him last week under the leadership of National General Secretary of trade federation ‘CAT’ Praveen Khandelwal that the Ministry of Textiles wants to keep the status quo in GST rates instead of increasing and they will back the increase by apprising the Finance Minister about the sentiments of the traders. Will ask to take Here, Maharashtra Finance Minister Ajit Pawar also told the presidents of Hindustan Chamber, Bharat Merchants, and Mumbai Merchants Mahajan that they would talk to the GST Council to reconsider the issue.
Dangerous for textile traders
Experts say that increasing the tax on clothing is not in the interest of the government, the textile industry, and the consumer. On the contrary, inflation will increase. Apart from this, there is a possibility of increasing tax evasion in the textile business again, due to which the revenue of the government will also be affected.
