Erode wholesalers join textile retailers in opposing GST

Wholesale textile shop owners in Erode have joined agitating retailers in their protest against the implementation of the Goods and Services Tax (GST). The wholesalers are observing the third day of their three-day strike beginning July 8. Retailers have pulled their shutter down since July 7 opposing GST on the industry at various stages of production.

According to the striking traders, the GST is levied in the range of 5 per cent to 18 per cent at all stages of textile production which considers dyeing, bleaching, colouring and stitching involved in turning a yarn into a fabric as separate segments. As a result, the total of all taxes would work out to over 23 per cent on an average. This would result in a sharp increase in both the material and the production cost, and would adversely affect all the small and medium players in the textile industry.

Erode city has more than 10,000 retail shops and over 300 wholesale textile shops. Each day of strike would entail a loss of Rs 30 crore for these traders.

Weavers across Erode are already on strike for over a week. “The GST will add not less than 25 per cent taxes on our produce against the existing zero percentage,” they said.

Erode produces handloom and powerloom products costing more than Rs 900 crore every month.