Footwear traders oppose GST hike, seek rollback
Ludhiana: The city’s footwear traders and manufacturers oppose the increase in the GST (goods and services tax) on this item from 5 to 12% since January 1, as they claim that it will cause them to lose sales and gain financial burden.
The businessmen claim that the GST on textile and garments was also proposed to be increased the same way but the government had spared those sectors without extending the same concession to the footwear industry. Describing the objections, Harvinder Singh of the Ghanta Ghar Wholesale Shoe Market Association said: "GST on any footwear, including shoes, chappals, and sandals, priced below Rs 1,000 has been hiked to 12%. This is the biggest setback ever to our trade, since the tax rate has more than doubled, the consequences of which will be disastrous for both the traders was well as the manufacturers. Our cost of doing business will increase and the sales will drop because of the increased selling price."
Footwear trader Surinder Singh said: "What has upset us the most is that when last year the notification was issued by the taxation authorities about the increase in the GST rates, footwear was put in the 5% tax slab with textile and garment products but the new rate of 12% was slapped selectively on the footwear sector alone. We have nothing against the textile and garment sector but we dislike mistreatment our industry, which has thousands of micro and small-level businessmen."
The sector of the industry wants the government to restore the GST rate to 5%. Shoe trader Ramandeep Singh said: "The increase of 7% GST will hit our businesses hard, as the rate of all kinds of shoes and allied products that earlier were in the 5% slab will increase significantly, forcing the consumers to curtail their purchases. We request the central government to reconsider its decision and roll back the hike in GST on footwear."
