The traders dealing in the textile business got relief from the hike of Goods and Services Tax. The GST council has decided to put the provision, to increase the rates of tax on specific garments, on hold for some time. The council said that they have decided to keep the GST rate fixed to 5% on the garments costing below INR 10,000. The council had previously given indications that they might remove the 5% tax slab for garments and charge a tax at the rate of 12% instead.
Knitwear Club finance secretary Harish Kairpal said that the traders of the club were thankful to the council for making the decision. He said that the hike would have destroyed the manufacturers who were already struggling with the drop in demands from both domestic and international markets. He also urged the government to introduce the required reforms for the manufacturers to face the recession.
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Atul Saggar, general secretary of Apparel Manufacturers Association of Ludhiana, said that the decision taken by the council was a big relief for the manufacturers as the 7% hike in the taxes would have increased the cost at a time where they already are facing a shortage of orders.
Sukhvinder Singh, a garment manufacturer, and a member of the Ludhiana Business Forum said, “The currently applicable GST of 5% on certain fabrics and garments costing up to Rs 1,000 is already non- refundable, and when the same rate is into force for more than three years now, why did the government want to change it now. The stand taken by GST council meeting 
