Confederation of All India Traders (CAIT) urges Nirmala Sitaramanan, to withdraw the proposed 12% GST tax rate on textiles
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14 February 2022, Mumbai:
Confederation of All India Traders (CAIT) has urged NirmalaSitaramanan, Union Finance Minister, to withdraw the proposed 12 percent GST tax rate on textile which was suspended by the GST Council on December 31 last year for implementation till February.
BC Bhartia, National President, CAIT and Praveen Khandelwal, Secretary-General, said that the proposed hike should be withdrawn in the larger interest of consumers of the country.
According to the trade body, a hike will load an extra burden of a 7 percent tax rate on general consumers and will also hit the traders by blocking their capital with the department in the shape of refunds.
There was no tax on textile and fabrics for a number of years. Bringing the textile Industry back under the tax net itself was a big blow to the entire textile industry, the trade body added.
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Further, the goods which are lying in stock of the businessmen and sold on MRP the additional burden of 7 percent will be on the businessmen, it said.
The trade body believes that an increase in tax rate will not only hamper the domestic trade it will affect the exports adversely. Already the textile industry is not at a competent status with Countries like Vietnam, Indonesia, Bangladesh, and China.
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