On Thursday, a number of cloth markets across Ahmedabad will close for the day to protest the proposed increase in the Goods and Services Tax (GST). On December 30, nearly 45,000 retail and wholesale clothing stores will be closed.
From January 1, all apparel, as well as textiles and a few other raw materials, will be subject to a 12% GST, effectively raising the cost of clothing. According to industry insiders, the move will have a particularly negative impact on the price of low-cost clothing under Rs 1,000. Clothing costing more than Rs 1,000 is already subject to a 12 percent GST.
Maskati Cloth Merchants Association, New Cloth Market, Panchkuva Cloth Merchants Association, Sindhi Market, VIP Market, Karnavati Market 1-2-3, Ratanpol Cloth Merchants Association, and Revdi Bazaar will all be closed as part of the protest.
“Demand has already been impacted, and in the long run, this will have a negative impact on production, which will affect employment. Textiles are a labor-intensive industry that employs a large number of people. The increase in tax rates will have an impact on all of this “Bhagat continued.
According to industry estimates, textile production will be reduced by 30%. On Wednesday evening, there will be a demonstration as well.