Textile traders across the country including Surat have heaved a sigh of relief. In the meeting of the GST Council held in Delhi on Friday, the decision taken earlier to increase the GST on clothes and footwear from five to twelve percent has been postponed till the next GST Council meeting.
As soon as the textile traders got the information about the postponement of GST increase in the GST Council, their happiness knew no bounds. It is worth mentioning that ever since the notification of increase in GST was issued in the month of November, since then the textile traders were against it. From the local level to the Finance Minister level in Delhi, textile leaders had presented their stand and apprised them of the adverse impact of the GST hike on the industry.
FOSTA, the largest body of textile traders in Surat, and representatives of industry representatives from the same Chamber of Commerce made the offer to meet the Finance Minister in Delhi. Local MPs CR Patil and Textiles Minister Darshanaben Jardosh were also with her.
Initially, the offer of industry organizations seemed to have had a waning effect and there were indications that the government was not in a position to show leniency in this matter. But at the grassroots level, the anger among the textile traders was increasing.
It is generally believed that the business class has been a committed voter and supporter of the Bharatiya Janata Party. But when business and livelihood were seen to be affected, the traders also started speaking openly towards the BJP. Anyway, the central government has been able to get rid of the heat of the farmers’ movement with great difficulty in the past. In such a situation, the government did not want to allow any new movement to flourish.
There was a feeling among the textile traders that if the government does not take back its decision, then they should protest by not doing business at the increased rate. On the other hand, in Surat, together with Fosta, other industry organizations have called for a one-day symbolic bandh on December 30 at their own level. The government came to know about the growing fury at the ground level. Hope was raised by Gujarat State President CR Patil’s statement openly in favor of textile traders from the stage in a program in Surat. At the same time, by calling a meeting of the GST Council on 31st December, immediate relief has been given to the textile traders.
There is no doubt that the efforts of FOSTA and in association with other organizations, the one-day symbolic bandh has definitely had an effect. Now the matter will be under consideration in the next meeting of the GST Council to be held in February. Whether the final decision will be taken in that meeting to keep the GST at 5% or any new rift will arise, only time will tell. By the way, if the textile traders really do not want 12 percent GST, then they will have to set a policy to offer it to the government and in future unitedly and collectively to present their side in this whole matter. Well, good news has come for the traders only for two months!