Sarees, apparels to get costlier under GST

Textile merchants are on strike opposing 5 per cent GST.

Not a good news for frequent buyers of sarees and readymade apparels. As these products are likely to be costlier under the new Goods and Services Tax (GST) to be rolled out on July 1.

Purchase of garments and apparels up to Rs 1,000, come under 5 per cent GST tax slab, beyond which they will be taxed at 12 per cent. The same rates will be applied for other readymade apparel such as salwar kurtas, dresses, skirts, tops and jeans, reports Businessline.

Other natural fibres (except silk and jute) will be taxed at 5 percent and synthetic and manmade fibres will attract a higher tax of 18 per cent while. This will also impact the cost of sarees.

Therefore, textile merchants are on strike opposing 5 per cent GST.

"Textile sector was never levied any kind of tax, be it service tax, VAT or Excise, so GST makes no sense. Also, the traders have been given no training about GST and penalty and punishment for non-compliance is harsh and frightening for them," says Gaurang Bhagat, president of Maskati Kapad Mahajan, a body of cloth traders in Ahmedabad.

He said cloth merchants were not given enough time for GST compliance, and only a few traders have so far registered on GST network.

In Mumbai, nearly 15,000 textile traders at Mulji Jetha market, Swadeshi Bazaar and Mangaldas market kept their shops shut for as part of the strike.

(With agency inputs)