Gurinder Pal Singh, a businessman of Akal Market, says that our business has just started running after the Corona period, now the government is directly increasing the GST by seven percent. This is a direct policy to destroy our business. The clothes are worn by every class of people from poor to rich. Now he has to pay more. In such a situation, how will the common people do their work in this inflation? It is also a problem for businessmen.
Wearing clothes will become expensive from the first day of the new year. The GST Council has decided to reduce the GST on readymade garments from 5 percent to 12 percent with effect from January 1, 2022. Now common people will have to pay seven percent more price while buying clothes. Due to this decision of the government, not only the customers but also the readymade garment traders are disappointed.
Traders associated with the wholesale business say that they are currently trying to recover from the recession of the Corona epidemic. In these circumstances, an increase of 7 percent in GST is no less than a thunderbolt. Therefore, the businessmen appealed to the government to immediately stop this decision and give relief to the businessmen along with the common people.
People associated with the wholesale business say that the central government had earlier kept the cloth in the five percent GST slab. He buys ready-made clothes from the factory after paying GST. Retail traders buy goods from them. In this, 90 percent of the shopkeepers do not have a GST number and do not even give bills to the customer. Such retailers buy and take them away without paying GST.
He somehow adjusts the 5% GST from his profits. Now it is difficult to give 12 percent of your profits. At the same time, it will be difficult for the shopkeepers who have old stock worth lakhs of rupees to adjust the stock. Traders say that there will be no impact on branded companies as their customers are from the creamy layer.
Customers already less, now how will the business run
Our business came to a complete standstill during the Corona pandemic. Till now the old loss has not been compensated. Traders have stock worth lakhs of rupees, now 5 percent GST on old stock and 12 percent GST from the new year. In this way, the traders will be left the only ground in the books of accounts. There is already less customer due to paucity of money, now who will go out for shopping due to increase in prices due to increase in GST. The government should think of something for the common people as well as the businessmen. Manpreet Singh Bunty, Head, Akal Market Readymade Association.
Branded companies will not make any difference
The government is going to increase GST from clothes from January 1, its impact will be most on medium and small industries. Because the 7 percent price increase on the fans of branded clothes will not make any difference. Most of our customers are from the middle and lower classes. For whom it is difficult to tolerate a 7 percent increase in prices. Such customers do not ask for bills but negotiate directly. The government should focus on medium and small industries. – Hardeep Singh, Chairman Akal Market Readymade Association