Textile wholesalers all over the country are demanding that the GST, also known as Goods and Services Tax is withdrawn right away by the Central government. The GST which is to be regularly imposed on the textile business professionals from the 1st of July this year has already raised eyebrows on all sections of the country, since it is believed to negatively impact the textile industry as a whole. Millions of people directly or indirectly depend on the textile trading activities and other related transactions all over the country whose livelihood is going to be seriously impacted if the GST comes into place from the beginning of the next month. Not only is this going to have a severe impact on the production techniques used in the textile industry as well as the methods used for the accumulation of raw materials but also influence the lifestyle of the families associated with the textile industry.
Already a number of meetings have been held in different parts of the country where discussions have been held to find the best ways for adjusting with this serious change that is about to take place. Various states have already requested the Central Government in their own way to completely abolish the GST or at least reduce its rates to a significant degree so that they do not negatively impact the lives of people associated with the textile industry in one way or another. A number of additional meetings are to be organized in different states within the coming days where the rising apprehensions of the hundreds of textile traders are going to be addressed. With the introduction of GST, the prices for the garments and cloths are going to increase and this is going to seriously impact the consumers and their purchasing decisions. It is also going to have a major impact on the textile business as a whole.
According to the official sources, the GST taxes are going to be levied on different raw materials used for manufacturing clothing items as well as the methods that are used for processing the same. These include the yarn, dying, manufacturing methods as well as additional artwork carried out on the clothing items such as embroidery. Some experts suggest that the government should collect the taxes during the manufacturing stage of the clothes without actually collecting the GST from retailers. Many people involved in the textile industry strongly believe that the different states and their chief ministers should take active steps and put additional pressure on the Central Government so as to withdraw GST on the sale of cloths, textiles and garments. In many parts of the country, there has been substantial agitation in the protest for GST. Demands have been made on withdrawing GST from textile manufacturers. Unless this is done, the textile traders would be heavily affected.
Some people involved in the textile industry also share the opinion that the implementation of the GST is going to lead to corruption in the long run. Moreover, the retail traders, tailors and other professionals associated with this industry are going to be seriously affected by the GST in the quality of their personal lives. Some of the clauses that are present in the GST can be used for harassing the textile traders. They can also be arrested for not being compliant with the rules associated with the GST laws. According to the new laws of GST, 5% tax is going to be levied on purchasing of textiles below Rs 1000. Once the sales exceed Rs 1000, the tax rates are going to go as high as 13%. This is going to have a serious toll on the consumers.