Small-scale garment traders and members of trade unions today lodged their protest and kept their shops closed against the 5 per cent GST imposed on readymade garments and unstitched fabrics. The readymade clothing markets in the Capital City remained shut and merchants were on strike on Thursday. The merchants shouted anti-government slogans demanding removal of 5 per cent GST on textile as currently zero percent tax is levied on this industry.
During the protest, the traders also tried to forcefully shut some shops near refugee market in the city and a mild scuffle also took place between the two groups. However, police intervened and took control of the situation using force.
The traders said that due to lack of infrastructures and easy mobility, the unorganized sector does not have a flow of proper income tax complaint system. Thus, they come under the defaulter’s category.
No access to computer technology or proper bill record, small scale traders do not provide the customer will a bill which results in save huge amount of tax, they added. Even they do not have the access to income tax credit system which creates imbalance between an organized and unorganized sector, added a trader.
According to Ranjeet Garodia, General Secretary of Federation of Jharkhand Chamber of Commerce and Industries, the imposition of GST on textile industry will mainly affect the small scale traders as they will not be able to follow new procedures of filing their monthly return five times a month.
Rajesh Varma, assistant store manager of V mart said that GST will not affect the large scale store as the tax will only be imposed on branded as well garments whose worth will be above rupees 1000. So the new tax levying will not affect their sales.
Traders in Jamshedpur also joined the strike as under the banner of Jamshedpur Wholesale Cloth Merchant Association over 5,000 small and big textile traders of steel city observed a daylong strike today. All wholesale textile stores in Jugsalai, Bistupur and Sakchi downed shutters.
"Though since independence textiles (not readymade) have been exempted from all sorts of taxes, the GST of 5 per cent will increase woes of the traders. We demand rollback of GST in textiles," said Anil Modi, vice-president of the association.
Another senior functionary of the association and a textile trader Kamal Jalan said the GST would also bad affect on the retailers " I am of the onion that taxing small-time merchants will hit them hard as they do not have proper computer knowledge to upload bills and maintain accounts," he explained.