face. The textile traders of the textile city of Surat are disappointed these days. The GST Council has issued a notification to apply the same 12% duty on the entire textile sector with effect from January 1, 2022. At the same time, the traders have decided to observe a one-day shutdown to convey to the government their demand of not increasing the GST tax.
FOSTA, the largest organization of Surat’s textile traders, has issued a notification on Tuesday evening, declaring that all textile markets of Surat city will be on Thursday 30 December 2021 against the GST rate of 12% on textile fabrics, garments and overall textile industry. Will be closed On behalf of FOSTA, the textile industry and textile markets across the country have also been requested to join this bandh.
On the other hand, while issuing a notification on behalf of the Confederation of All India Traders, on Thursday, December 30, 2021, Garment, Textile Traders and Footwear Traders across the country have been called to observe a one-day shutdown. At the same time, traders in the textile market of Delhi, the capital of the country, are also going to remain closed on this day.
It is to be known that the Central Government has decided to entangle the majority 85% of the sector in the web of GST increase to solve the problem of about 15% of the textile sector which is facing the problem of inverted duty structure. Businesses are unhappy with this. Textile industry leaders are of the view that the increase in GST on cloth will not only create problem of working capital but will also make cloth costlier for the same consumer as the last line of business. It will also become difficult for small and medium businessmen to survive in business.
Textile Yuva Brigade, another organization related to the textile business of Surat, has also announced that it will organize a Sadbuddhi Yagya on Wednesday, 29 December at Radharaman Textile Market in Saroli, Surat. The organization believes that in a country where 80 crore people are required to provide government food grains, increasing the GST rate on clothes, the second most important item in that country, is not logical. On Thursday, December 30, a protest will be organized on behalf of the organization by hoisting a black flag outside the Japan Market located on Ring Road.
The rate of GST on cloth is going to be 5 to 12% from January 1, 2022 and so far many offers have been made to the government by the businessmen. Closed on 30th December. Whether these efforts have a positive effect or not. Whether the government will stop the increase in GST by the night of December 31, deciding in favor of the traders, it will be a matter to be seen.