Under the GST, 5 per cent tax is levied on readymade garments priced under Rs 1,000 and 12 per cent on those priced over Rs 1,000. This would result in around 10 per cent increase in the final price paid by the consumer, according to Telangana State Federation of Textiles’ Association (TSFTA).
“The textile trade is a credit-oriented business. Especially in the wholesale trade, the payment is received only six months after the sale of goods. Under the new GST, the trader is expected to pay tax immediately after the sale. This will result in tremendous pressure on the trader in the form of liquidity,” TSFTA president Prakash Ammanabolu, said while speaking to reporters in Hyderabad.
Raising TSFTA’s grievances with Union labour minister Bandaru Dattatreya, who was in the city, Ammanabolu said that the textile trade is carried out even in remote villages. Traders in these areas choose textile or garment business as it is a free trade and it does not require any particular skill. “The rural traders earn a small amount and their families depend on the business,” he said and requested the minister to represent their cause to Union finance minister Arun Jaitley and urge him to roll back the GST on small traders and retailers. (RKS)
ALCHEMPro News Desk – India
Receive daily prices and market insights straight to your inbox. Subscribe to AlchemPro Weekly!
marketing@alchempro.com
