About 35,000 textile shops in Telangana are going to be closed for three days beginning June 27. The Telangana State Federation of Textile Associations (TSFTA) has given a bandh call, joining the national-wide protest announced by the national body of such associations across the country.

The traders in the State will take out a rally on June 30 protesting against imposition of GST on textiles.

Representatives of 11 different associations, representing different segments in the cloth business took part in a press conference here on Sunday to protest against the Union Government decision.

“The GST Council had promised that it is not going to tax textiles. But contrary to their promise, they have imposed a 5 per cent tax on the commodity. This will result in closure of scores of shops,” TSFTA President Ammanabolu Prakesh has said.

“The textile trade is quite different from some other businesses. Payments come very late, say after six months, after dealers or stockists supply it to the retailers. But we are expected to pay the tax immediately. This will result in tremendous amount of pressure on the trader for working capital,” he said.

Margins in the business were too small as traders faced tough competition from local and international markets. “If tax is imposed on this small margin business, several hundreds will be shut down,” he said.

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