Punjab traders demand lower GST on fabrics, citing economic strain

Punjab traders are urging a reduction in Goods and Services Tax (GST) rates on fabrics, arguing that the current structure disproportionately impacts the industry. At a recent meeting of the Punjab Pradesh Beopar Mandal (PPBM), concerns were raised about the revised GST rates, which place a majority of knitted sweaters and high-end fabrics in the 18 per cent and 28 per cent tax brackets.

Traders emphasized that Punjab, particularly Ludhiana, is a textile hub, and higher taxes will further strain an already struggling economy. They pointed to significant losses incurred by businesses in recent years due to factors like border closures and law and order disruptions.

To mitigate the impact, the PPBM has proposed lowering the 5 per cent GST threshold for fabrics from Rs 1,000 to Rs 2,000. They plan to meet with Punjab Finance Minister Harpal Cheema, a member of the GST Council, to advocate for the industry and seek a resolution to this pressing issue.