JAMMU, December 28: The Jammu-based Wholesale Fabric Merchants Association has expressed resentment against the central government’s GST Board hike the GST rate from 5% to 12%, calling it wholesale “blow and blunder” for the textile industries.
A meeting of the Wholesale Cloth Merchants Association working committee was held here today at KC Residency under the chairmanship of Ragbir Gupta. Several important issues were discussed to the tune at the meeting, in particular the issue of increasing the GST rate from 5% to 12% on fabric by the GST Council.
The members present at the meeting unanimously and with one voice condemned the increase in the rate of the GST.
Ragbir Gupta has repeatedly stated that the respective governments put pressure on trade and industry by imposing taxes in one form or another. The GST on clothing, textiles and footwear was previously increased from 0% to 5% and now, as of January 1, it was going to rise to 12%, which will ruin businesses, he said, adding that companies have been promoted to end up small industries.
Gupta said the textile and hand-weaving sectors provide the most jobs in the country after the agricultural sector. Instead of expanding incentives and demanding support for these sectors, the government was adamant about ending them, he said.
Gupta said traders and manufacturers were not happy when the 5 percent GST was imposed, now a further 7 percent increase would cripple the industry.
The members of the Association called on the Union Minister of Finance to repeal the order to revive the commercial fraternity and it also has an additional burden on the public who are already facing many difficulties due to the high inflation .