New Delhi, 25 Nov (KNN) In response to hike in GST from 5% to 12% on apparels, textile, footwear has been termed as unjustified by the Confederation of All India Traders (CAIT).

“Instead of simplifying and rationalising the GST tax structure, the GST Council has made it as “ most complicated GST law in India over the world” and much against the GST structure shown to CAIT by the then Finance Minister Arun Jaitley,” said CAIT.

CAIT National President B C Bhartia & Secretary General Praveen Khandelwal said in cotton textile industry there was no inverted tax structure and questioned the decision of bringing fabric and other cotton textile goods under the 12% bracket.

“Even in the manmade textile industry, at the stage of manufacturing  garments, sarees and all types of made ups there was no inverted tax issue. Without having any understanding of the stages of the textile industry such a harsh decision will be a regressive step,” said CAIT.

CAIT has decided to launch an agitation across the country against it, which will be led by two important trade associations of cloth trade namely Delhi Hindustani Mercantile Association and Federation of Surat Textile Association (FOSTA) under the umbrella of CAIT, said the release. 

Apart from textiles and footwear, trade organizations of all types of trade, workers, employees associated with them will also participate in it.

“Roti, Kapda & Makaan “are three basic things of life. Bread has already become very expensive due to high rise in prices , buying a house is beyond the reach of a  common man and the cloth which was accessible has also been made expensive by the GST Council.  After all, what kind of treatment is being done to the common man of the country. In this matter not only the Central Government but also the State Governments are completely guilty because these decisions have been taken unanimously in the GST Council and no one has opposed such an irrational decision. They have demanded that the increased rate of GST on clothes and footwear should be withdrawn immediately. They said that retail trade in the Country has already been destroyed due to Covid and now that the business was resuming on track from this year, the increase in the GST rates will be last nail in the coffin of the trade,” added the both leaders.

To decide about the future strategy of the agitation, the CAIT has convened a video conference on 28th November with the leaders of textile and footwear trade across the Country which will also be joined by prominent trade leaders of all States.

CAIT has urged Union Finance Minister Nirmala Sitharaman & Textile Minister Piyush Goyal to keep the notification in abeyance and start consultation with traders.