As a 72-hour bandh called by textile traders against Goods and Services Tax (GST) levy on fabrics began on Tuesday, the hustle bustle at the wholesale textile hub at Tobacco Bazaar in Secunderabad was missing.
The only sign of activity in the narrow streets dotted on either sides by commercial establishments of different dimensions dealing in textiles was a meeting condemning the introduction of the levy.
These and many others across the twin cities will remain shut till Thursday, declared Telangana State Federation of Textile Associations President Ammanabolu Prakash. He estimating the number of people employed by 500 shops in Tobacco Bazaar at about 2,000.
Exempted category
Textile traders across the State, he said, were supporting the nationwide bandh as fabrics at present came under the exempted category.
The 5% GST that it would attract would complicate matters for those in the trade, he said, pointing to the compliance hassles as well as the need for more working capital.
For the end consumer, the price of textiles is likely to go up by 8-10%, the textile association president added.
Compliance issues
On apprehensions of the trade, that mainly deals in suiting, shirting fabrics, dress materials, as well as sarees, Mr. Prakash said complying with the requirements is not going to be easy for the traders considering the lack of familiarity with computers.
The traders operate on thin margins, he claimed, adding much of the business is credit oriented. In this backdrop, GST compliance would be challenging and add to their cost, the association president added.
The traders have not registered under GST in protest, he added.
