On 25th December, the State General Secretary and a Central Traders Welfare Board member attended a meeting of the Punjab Pradesh Beopar Mandal (PPBM). These leaders questioned why cloth, a basic necessity, was treated as a luxury good and subjected to a 28 per cent GST.
Fabrics that cost less than Rs. 1000 (US $ 12) are currently subject to 5 per cent GST, while those that cost more than Rs. 1000 (US $ 12) are subject to 12 per cent GST. Fabrics priced under Rs. 1500 (US $ 18) will be subject to 5 per cent GST, those priced between Rs. 1500 (US $ 18) and Rs. 10,000 (US $ 117) to 18 per cent GST, and those priced over Rs. 10,000 (US $ 117) to 28 per cent GST, as per the revised plan.
The majority of knitted sweaters would now be subject to the 18 per cent GST slab, traders noted. Additionally, the majority of fabric purchases during the wedding season cost more than Rs. 10,000 (US $ 117).
The dealers suggested that, should an amendment be necessary, fabrics priced up to Rs. 2000 (US $ 24) should be subject to the same 5 per cent GST rate as is currently applied to those priced up to Rs. 1000 (US $ 12).
They emphasised that Punjab is the centre of North India’s textile sector, especially Ludhiana. Due to issues like farmers closing their borders and disrupted law and order, Punjab’s economy has already been under stress in recent years. Over the previous two and a half years, Punjab firms have lost at least Rs. 5 lakh crore (US $ 58.64 billion), and the state’s industries and enterprises would be further burdened by the higher GST rates.
The traders added that they will soon meet with Harpal Cheema, the Finance Minister of Punjab and a member of the GST Council, to demand his assistance in order to rescue Punjab’s textile industry.
