Cloth traders protest GST hike, Sisodia says his govt with them

new delhi: Several markets dealing with garment business in Delhi remained shut on Thursday in protest against the central government's proposed move to hike GST rates on textile from existing 5 per cent to 12 per cent from January 1 even as the Delhi government expressed solidarity with the traders and vowed to raise the issue in today's GST Council meeting.

Sixty-four small and medium markets of Chandni Chowk, Gandhi Nagar, Lajpat Nagar, Karol Bagh, Okhla, Shanti Mohalla, Pitampura, Jogiwada, Rohini among others, remained shut following the strike call.

Bhagwan Bansal, vice president, Delhi Hindustani Mercantile Association said the proposed hike in the Goods and Services Tax (GST) rates on textile and readymade garments will finish the business and also burn a big hole in common man's pocket.

He said clothes have already become expensive by about 30 per cent due to increased cost of raw materials and the hike in GST rates will further impact the business. The Centre's proposal to hike GST from 5 per cent to 12 per cent on textile and readymade garments from January 1 will adversely affect the business. Small traders will literally be finished.

We appeal the central government to take back the decision and establish a dialogue with traders on this. We will call an indefinite strike if this demand is not met, Bansal said.

Meanwhile, Delhi Deputy Chief Minister Manish Sisodia, who also holds the finance portfolio, supported the strike by traders and said he will put the demand of traders in Friday's GST council

meeting.

Textile and garment traders are opposing the hike in GST rates. Their demand is legitimate. The Aam Aadmi Party government under the leadership of Arvind Kejriwal has always been in favour of keeping the tax rates low. I will put forth the demand of keeping the tax rates low on clothes in Friday's GST council meeting, he tweeted.

In an official statement, the office of the Deputy Chief Minister said that the Centre was planning the "humongous" hike "despite the backbreaking inflation in the country" in what it called a "complete disregard for the common man's woes".

It added, "The Delhi government has always stood for the rights of the poor and underprivileged and has decided to protest against the hike and demand the rollback of the proposal in the GST council meeting tomorrow."

Brijesh Goyal, chairman, Chamber of Trader and Industries (CTI) said nearly one lakh shops related to textile and garment business in the city shut shops on Thursday in protest against the GST hike. He said since independence, there was no tax levied on clothes, but when GST was introduced in 2017, 5 per cent tax was imposed on garments and textiles.

If 12 per cent GST is imposed on textiles, traders will not be left with the capital which will lead to closure of small factories and also increase tax evasion, Goyal added.