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Textile traders' demand to not tax fabrics unacceptable, says Arun Jaitley

Amid protests staged by textile traders in various pockets of the country over GST

ANI  |  New Delhi 

Arun Jaitley
Arun Jaitley

Amid protests staged by in various pockets of the country over the new Goods and Services (GST), Finance Minister clarified that the demand of the to not levy any on cannot be accepted.

While protesters have highlighted that the new regime is complicated and lacks clarity, Jaitley stressed that necessary steps have already been taken to facilitate taxpayers to take registration.

"Sewa Kendras have been set-up in various centres to handhold the taxpayers and to provide all necessary guidance regarding compliance. The rate structure for the textiles sector enables ease of classification and determination of rate," Jaitley argued.

Addressing a question posed during the Rajya Sabha session here on Tuesday, Jaitley pointed out that nil on will break the input credit chain and then the garment manufacturers will not be able to get the credit of on previous stages.

Additionally, on the import front, he said that there will be zero rating of imported fabrics, while domestic will continue to bear the brunt of input taxes.

Since the rates are equal to or lower than the pre-incidence, Jaitley clarified that the price of is not likely to go up.

He also pointed out that the organised traders and unorganised sellers in the textile sector have not been affected by the

from Surat, Ahmadabad and other states are staging a fortnight-long protest over the implementation of the new regime.

The protestors, who lashed out against the Centre over the lack of clarity in the GST, claimed their strike has already caused a loss of Rs 6,000 crore to the government.

In Surat and Ahmadabad, markets remained closed with traders blocking traffic in certain areas, as they feel that the is too complicated for their understanding.

Under the new taxation system that was rolled out on July 1, it was decided that garments under Rs 1,000 would attract a five percent charge, while those above Rs 1,000 would attract a rate of 12 percent. Also, a five percent would be levied on with no refund of unutilized input credit.

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