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Fabric traders stage strike against 5% GST levy

So far, around a million small and medium size units were paying no duty

GST, protests
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Traders at a day-long strike against the goods and services tax in Ahmedabad on Thursday. (Photo: Reuters)

Dilip Kumar Jha Mumbai

Cotton fabric traders staged a nationwide token strike on Thursday, protesting the decision to bring the item under the goods and services tax (GST) net. 

A five per cent rate has been levied — around a million small and medium size units were paying no duty so far. Even if these units wish to evade the tax, garment makers would be a check — to claim input credit from the government, garment manufacturers would need GST compliance papers from fabric makers and traders.

“We had a firm belief that items which at present are not taxed (either excise or value-added tax)