The Sonepur Textile Merchants’ Association has expressed unhappiness over imposition of 5 per cent GST on textiles.
The association demanded that the Government should keep cloth merchants away from the GST loop. “We are not opposing the GST, but the tax that is levied on textiles, which is not fair,” said association secretary Nandalal Agrawal. Earlier, there was no tax on retailers and wholesalers selling clothes.
Agrawal also added the GST on clothes will be 5 per cent. In addition to the GST, apparel and ready made garments with a value of less than Rs 1,000 would be charged 5 per cent tax, while garments of a value of over Rs 1,000 value would be charged with12 per cent GST.
Textile sector was never levied any kind of tax earlier, be it service tax, VAT or excise. Association president Ramkrushna Meher alleged that the new tax rules would disturb the entire trade system.
The association claimed that there would be 4 to 5 per cent rise in prices for consumers. All the taxes on textiles should be limited to manufacturing level as it would ease out the burden on retailers, consumers and cloth traders, said Chamber of Commerce Secretary Gunanidhi Meher.
The GST would adversely affect the retailers and small time vendors.
More than 80 per cent of the people buy clothes from local merchants, he added.