With Goods and Services Tax (GST) on textile products to be increased from 5% to 12% from January 1, 2022, traders at the textile markets in Erode city fear that it would adversely impact their business.
There are over 3,000 textile shops at Ashokapuram, near Central Theatre, E.K.M. Abdul Gani Textile Market and at Panneerselvam Park in the city. These shops deal with both wholesale and retail sales. They receive orders from Maharashtra, West Bengal, Madhya Pradesh and other States and dispatch the goods in lorries. Traders from other districts arrive every Tuesday to the weekly market and purchase in bulk quantities. Retail sales take place usually before Pongal, Deepavali, Christmas and New Year.
On Tuesday, the retail sale was about 30% in Gani Market and the wholesale was less than 10%. “Sales volume for New Year and Pongal was very low today,” said K. Selvaraj, president of Erode Gani Market Weekly Textile Traders’ Association. He said that hike in GST on textile products would affect wholesalers, retailers and the consumers would have to pay 7% additional tax.
“When the purchasing power of consumers drops, there is no business for us”, the traders said. They wanted the hike in GST on textile products deferred as it would affect lakhs of families.
