Ahmed Patel raises GST traders agitation issue in Rajya Sabha

New Delhi: Senior Congress leader and member of Rajya Sabha in Gujarat, Ahmed Patel today raised the issue of protests of textile traders over GST implementation in Gujarat and elsewhere. While making it clear that neither those protesting nor the Congress party was against GST, he said he had met the agitating textile traders and had realized that their fears are not unfounded.

“There problem is against the manner in which GST has been implemented and their anger is because the government has refused to listen to them,” he said.

“After agriculture, the textile industry is the second largest employer in the country. More over it’s a unique industry. Over 14 crore people are dependent on this industry. This industry has a long and fragmented supply chain. Someone procured yarn, some weaves, someone does the embroidering, some on does designing etc. These together constitute the 14 crore people whom the GST is impacting,” he said describing importance of textile industry.

He pointed out, “so far the taxation policy demanded only 12.5% excise duty on yarn, and the subsequent job work was out of the tax net. Now 18% GST has been imposed plus 5% tax on these subsequent job work has been imposed, which impacts all these people. They are poor, illiterate, can’t afford to buy a computer, can’t hire an account but yet are willing to contribute to nation building by supporting GST provided you listen to them.”

“What are their grievances? Do you know why are they protesting? First, these small and marginalised businesses that were never in the tax net now have to file GST documents 36 times a year. And they were barely given 27 days to prepare for GST.Second, Most of them are unregistered; do not fall into the definition of manufacturer or trader as decided by you. Hence the input credit is of no use to them. Also input credit is availed only after you pay the tax. Where is the working capital available to these small traders to pay it upfront? Third, the various GST on different type of fibres and the subsequent tax and difficulty of refund could make this important industry uncompetitive and result in job loss. Therefore the need of the hour is to talk with them, to simply the GST documentation process for them. Instead of filing 36 times make it 3-4 times a year. Make it easier for them to get refund and give them some time to cope with this new policy,” he said.

“The current GST regime is very beneficial for large industrialists who have done total backward integration and have high turnover. Those with less turnover and revenue are worst impacted.
Even now in Gujarat traders are shutting shops. There is sense of fear and uncertainty. At a time when unemployment is high, you can’t afford to be arrogant and look the other way. For large private players you make so many concessions, you were willing to tweak local procurement rules for some large foreign companies in retail. Can’t you talk and show some sensitivity to our own people? If you can’t help in hiring people don’t be responsible for firing them,” the Rajya Sabha MP said.

“The textile industry in the country is in disarray. From Tirupur to Varanasi to Surat, there is a huge crisis. The Jute industry has come to a stand still, the Punjab government has already warned that lack of jute bags will adversely impact procurement of food grains.To make it difficult countries like Bangladesh and Vietnam have taken away our share of exports. If you don’t act now the crisis on the textile industry will spread to other parts of the economy,” he further said.

“The Prime Minister used to say that 5F for the textile industry, farm, factory, fibre, fashion and foreign. Unfortunately the policies of his government are resulting in failure, frustration, fiasco, fatigue and flop shows. It looks like you have waged a war against small and medium businesses. First, demonetisation and now a faulty GST. I therefore urge you to talk to them and ensure their problems are addressed,” senior MP said.

DeshGujarat