Hike in GST led to closure of 325 hawai chappal manufacturing units: Rubber Association

Jalandhar, July 5 (KNN) The Jalandhar Rubber Goods Manufacturers’ Association on Wednesday said that due to the increase in GST, around 325 hawai chappal manufacturing MSME units have closed down.

The association pointed out that Jalandhar alone use to have 400 hawai chappal manufacturing MSME units around seven years ago, but now, due to the alleged non-cooperative attitude of the government, about 325 of these units had been closed down.

The industrialists blamed the increase in GST from 5 per cent to 12 per cent for the closure of units.

Jalandhar Rubber Goods Manufacturers’ Association’s secretary, Rakesh Behal said, “When GST was introduced on July 1 in 2017, there were a lot of discussions and an in-depth study was done for the proper rate of GST on various items being used by different segments of the society. It was decided that footwear and textiles below the price of Rs 1,000 will be put under a 5 per cent GST slab.”

“Later, the uncalled-for hike of 7 per cent GST has adversely affected the demand and supply of low-cost hawai chappal across the country,” he said.

Senior industrialist Gursharan Singh said the government must make efforts to revive the state’s industry, which he said is on a ventilator.

“Earlier, rate of VAT on these products was either zero in most of the states or 0.5 per cent in some of the states, so 12 per cent GST on low-cost hawai chappal mainly used by people from financially poor sections is not at all justified,” he added.  (KNN Bureau)