Textile traders and businessmen from Surat, India’s major textile manufacturing and trading hub will lead their fraternity from across the country in New Delhi on June 22-23 to press for their demands for exempting the textile fabric and job work for Goods and Service Tax (GST) and will form a committee to decide on a road map for the protest.

Meanwhile, Rajkot Chamber of Commerce and Industry (RCCI) has also organised a programme in Rajkot for 117 local trade bodies and another 24 from rest of Saurashtra.

They have also threatened indefinite nationwide strike from June 24 onwards, if their demands are not met.

A meeting of the member of all the leading textile associations of Ahmedabad will be held at New Cloth Market at 5:00pm on Thursday. Businessmen oppose the levying of five percent GST on fabric, saying that it will only complicate the matters for businessmen by increasing inspector raj without giving any benefit to the government.

They claim that the sector is predominantly unorganised and any attempts to convert them into organised sector at one go can potentially destroy the sector. If this happens, they fear that instead of an expected rise in country’s GDP, the economy will take a hit creating job losses on a massive scale.

The government has levied 18 per cent GST on yarn. They are not opposed to it. They don’t mind paying taxes. But traders are opposed to any tax on fabric. By taxing textile fabric, the government is bringing all the retailers in the GST loop. It won’t be possible for these retailers to comply with the GST regulations. RCCI want simplification in GST and getting an idea on the extent of relaxations and how to avail them.