KARUR: Over 200 weaving and knitting industries functioning in Karur district protested by stopping operations on Friday, condemning the Union government for increasing GST on textile products from 5 per cent to 12 per cent. According to sources, the tax has been increased to 12 per cent for ordinary textiles and all other garments priced below Rs 1,000, which comes into effect from January 1, 2022.
Muthu, an industrialist, said, “How will a common man be able to spend Rs 24 on taxes alone for a Rs 200 blanket? Without having a discussion with industrialists or manufacturers or even the public, the government has increased the tax. This is more than double the existing 5 per cent. The hike will affect the small and medium businesses and also the common man. With many MSMEs still recovering from the pandemic, this hike is a double whammy.”
Karur Weaving & Knitting Factory Owners’ Association president Danapathy told TNIE, “The Union government did not get our consent or from any of the industrialists before hiking the GST. While large and export industries won’t mind the hike, small scale businesses and MSMEs will find it too hard. Even the Fitment Committee had advised the Centre against increasing the GST. The committee had also suggested raising the tax gradually to 7-8 per cent as it will be easy on industrialists, but to no avail. With the GST council meeting scheduled in the month-end, industrialists have decided to meet Union Minister for Textile and other officials and put forth our plea.”