Ahmedabad cloth markets such as Ahmedabad’s Maskati Cloth Merchants’ Association go for one-day strike protesting against revised GST rates

29 December 2021, Mumbai:

A number of cloth markets across Ahmedabad will observe a day-long shutdown on Thursday, to protest the proposed hike in Goods and Services Tax (GST). Some 45,000 clothing retail and wholesale shops will remain shut on December 30.

From January 1, all apparel in addition to textile and a few other raw materials will attract 12% GST, causing an effective increase in the price of apparel. The move, according to industry players, will particularly affect the price of affordable clothing priced below Rs 1,000. Clothing above Rs 1,000 already attracts 12% 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.

“Until 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 a surge in tax rates,” Bhagat added.

Industry estimates suggest that textile production will be impacted by 30%. A demonstration will also be held on Wednesday evening.

TOI (The news article has not been edited by DFU Publications staff)

Dear Reader, we at DFU Publications are committed to providing the latest news updates on trade development and insights, to keep our readers informed. Stay tuned. Subscribe to our newsletter.

DAILY NEWS:

• Flipkart, an Indian e-commerce company, collaborates with PUMA on the ‘1DER' line, which features batsman KL Rahul

• Consumers will determine growth of sustainable fashion e-comm in India

• Myntra to offer 1 mn styles from about 7,000 brands at the 'Big Fashion Festival'

• Maharashtra government honors VIP as 'Best Innerwear Brand' for 2021-22

• Nike strengthens retail presences with new store at DLF Mall of India,Noida

Return to homepage