NEW DELHI: Textile markets in the national capital were closed on Thursday in protest of the increase in the Goods and Services Tax (GST). Cloth markets such as Chandni Chowk, Karol Bagh, Pitampura, and Lajpat Nagar were all closed.
Markets in Uttar Pradesh and Maharashtra were also closed, in addition to Delhi. Some markets were only closed for two hours, while others were closed whole day. The traders have vowed to embark on an indefinite strike if the government does not reverse the price. The Chamber of Trade and Industry (CTI) and other cloth trade organisations have called for the shutdown of textile and garment markets on Thursday, citing their dissatisfaction with the GST increase.
According to the Delhi Mercantile Association, "Textiles will be subject to a 12 percent GST beginning January 1, 2022. The GST was raised from 5 percent to 12 percent by the Union government. Everyone is aware that traders have had a difficult time in the last two years as a result of the corona pandemic." Various traders' organisations, led by the CTI, held a demonstration at Connaught Place on Wednesday.
The shopkeepers claim that if a 12 percent GST is introduced, they will run out of capital, forcing all small workshops to close and many people to avoid paying taxes. It would be tough to compete with China and Bangladesh in such circumstances, the traders added.