The Kerala Garments and Textile Dealers Welfare Association (KTGA) has demanded the immediate withdrawal of GST hike from 5 to 12 per cent for the textile sector.

The State council meeting of the Association held in Kochi decided to put strong pressure on the Central Government towards this effect. GST has been increased to 12 per cent for ordinary textiles and all other garments priced below ₹1,000. The decision would have a big impact on the business of small and medium-sized businesses which has started declining after the pandemic struck last year.

“As the garment sector goes through more than 20 value-added stages, the final tax of 12 per cent is tantamount to robbing the people. It is unfair to impose such a rate hike without consulting with garment businessmen on the existing tax revenue, payment of refunds and expectation of new tax revenue,” a statement issued here said.

The meeting demanded the government to withdraw the hike as it cast a shadow over the closure of many outlets – both large and small – due to Covid and floods.

The meet also urged the government to provide concessions as offered for MSMEs, interest free loans and electricity concessions, declaration of a moratorium on existing loans, restriction of online trade etc.

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