MADURAI: The Federation of All Trade and Industry Association (FATIA) said around 30,000 shops and industrial establishments in Erode participated in the bandh on Friday called to urge the repeal of 18 % GST on rent for commercial buildings. Textile markets and shops on main streets remained closed. Several shops in suburban areas like Sathyamangalam also downed shutters.
VK Rajamanickam, President of FATIA, claimed business worth Rs 100 crore was lost due to the bandh. Speaking to reporters, he said, “The central government has implemented an 18 % GST on rent for commercial buildings from November 1.
It also announced that businesses with an annual turnover of less than Rs 1.5 crore will not be able to claim Input Tax Credit (ITC) for the 18% GST on building rent. This will affect small, micro and medium enterprises because most of them operate in rented buildings.”
“Further, the government has increased property tax. The power tariff has also been increased. In response to our bandh call to condemn these, around 30,000 shops and industrial establishments remained closed. The central and state governments should withdraw the announcements,” he added.
In Madurai, majority of shops on busy roads including Masi Street, Kamarajan Road, Vilakuthoon and Town hall road remained closed. Traders in Sholavandhan, Thirumangalam and Usilampatti also closed shops. SVSS Velshankar, president of the Tamil Nadu Food Grains Merchants Association, said the union government should take action on the issues considering the welfare of the merchants and traders.