There is displeasure among traders across the country due to the increase in the rate of GST on all types of clothes and footwear from 5% to 12%. Textile and footwear organizations across the country have decided to organize a national movement against this decision under the banner of CAT. Traders say that the notification issued by the Central Government in this regard while implementing the decision of the GST Council to remove / fix the inverted tax structure (inverted duty) is unfair and irrational and it is the reverse duty envisaged by the government. does not fulfill the original purpose of removal.
The Confederation of All India Traders (CAT) has said that instead of simplifying and rationalizing the GST tax structure, the GST Council has converted it into a very complex GST law. The GST structure laid down by the then Finance Minister Arun Jaitley has been reversed. CAT National President BC Bhartia and National General Secretary Praveen Khandelwal said that the question is whether the inverted duty structure is completely correct? There was no inverse tax structure in the cotton textile industry, then why were clothes and other cotton textile goods brought under the 12% bracket. Even in the man-made textile industry, there was no upside tax issue at the level of manufacturing of garments, saris and all kinds of made ups. Such a drastic decision without understanding the stages of the textile industry would be a counter-revolutionary step.
He says that CAIT has decided to start a big movement against it across the country. Delhi Hindustani Mercantile Association and Federation of Surat Textile Association (FOSTA). In this, apart from textile and footwear, trade organizations of all kinds of trade, employees associated with them, artisans will also be involved.
At the same time, Brijmohan Agarwal, Senior National Vice President of CAT and National Minister Sumit Agarwal said that Roti, cloth and house are the basic items of life. The bread has already become very expensive, the condition of buying a house is not of the common man and the cloth which was accessible, has also been made expensive by the GST Council. In this case, not only the Central Government but also the State Governments are completely guilty, because these decisions have been taken unanimously in the GST Council. He demanded that the increased rate of GST on textiles and footwear should be withdrawn immediately.