During a meeting of the Punjab Pradesh Beopar Mandal (PPBM), the State General Secretary and a member of the Central Traders Welfare Board expressed concerns about the 28% GST on cloth, questioning why a basic necessity was being taxed as a luxury item. Under the current system, fabrics priced below Rs. 1000 (US $12) are taxed at 5% GST, while those above Rs. 1000 (US $12) are taxed at 12% GST. The revised plan introduces new tax brackets: 5% GST for fabrics priced under Rs. 1500 (US $18), 18% GST for fabrics between Rs. 1500 (US $18) and Rs. 10,000 (US $117), and 28% GST for fabrics exceeding Rs. 10,000 (US $117).
The majority of knitted sweaters would now be subject to the 18 per cent GST slab, traders noted. Additionally, the majority of fabric purchases during the wedding season cost more than Rs. 10,000 (US $117). The dealers suggested that, should an amendment be necessary, fabrics priced up to Rs. 2000 (US $24) should be subject to the same 5 per cent GST rate as is currently applied to those priced up to Rs. 1000 (US $12).
They emphasised that Punjab is the centre of North India’s textile sector, especially Ludhiana. Due to issues like farmers closing their borders and disrupted law and order, Punjab’s economy has already been under stress in recent years. Over the previous two and a half years, Punjab firms have lost at least Rs. 5 lakh crore (US $ 58.64 billion), and the state’s industries and enterprises would be further burdened by the higher GST rates.
The traders added that they will soon meet with Harpal Cheema, the Finance Minister of Punjab and a member of the GST Council, to demand his assistance in order to rescue Punjab’s textile industry.
During a meeting of the Punjab Pradesh Beopar Mandal (PPBM), the State General Secretary and a member of the Central Traders Welfare Board expressed concerns about the 28% GST on cloth, questioning why a basic necessity was being taxed as a luxury item. Under the current system, fabrics priced below Rs. 1000 (US $12) are taxed at 5% GST, while those above Rs. 1000 (US $12) are taxed at 12% GST. The revised plan introduces new tax brackets: 5% GST for fabrics priced under Rs. 1500 (US $18), 18% GST for fabrics between Rs. 1500 (US $18) and Rs. 10,000 (US $117), and 28% GST for fabrics exceeding Rs. 10,000 (US $117).
