The Erode Cloth Merchants Association called for a one-day strike demanding exemption for textiles under Goods and Services Tax.
Responding to the call, all textile shops, cloth bleaching and dyeing units, wholesale textile markets and power loom units in Erode were shut.
President of the Association, R Ravichandran urged the Centre to exempt the textile products under Chapter 52 of the Central Excise Tariff from the GST completely.
They also wanted to exempt power loom-made cotton, home textile products like bedspreads, bed sheets, pillow covers, towels from GST.
He said, bleaching, warping and sizing, calendaring printing etc are now exempted under Value Added Tax (VAT).
The textile merchants said the strike affected business worth Rs 50 crore.
To press their demands the textile merchants also observed a one-day fast in Veerapanchatram here.
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