Telangana textile traders say GST will claim 7.5 lakh jobs

Hyderabad: The biggest worry for textile traders over the Goods and Services Tax, to be implemented from July 1, is the additional burden and threat to small and medium traders.

Traders associations claim that it may lead 25 per cent of direct and indirect employees losing their jobs, totalling about 7.5 lakh. Textile traders remained shut on Wednesday as part of their protest at the GST. Traders in the districts carried placards, wore black badges and submitted representations against the GST to local officials. Traders said they would hold a rally in the city on June 30.

The Centre estimates that the textiles sector is the second largest after agriculture and provides direct and indirect employment to 12 crore people. Telangana state has 40,000 recognised small and medium cloth merchants who employ at least 30 lakh people.

Mr Ammanabolu Prakash, president of the Telangana State Federation of Textile Association, said each small merchant would employee at least five persons, and merchants with medium sized outlets, eight. The-se includes clerks, assistants and salespersons.

“Transporters depend on the textile sector to transporting stock from Telangana state to Mumbai and other destinations. These transporters also employ workers. Each cloth shop hires at least 30 tailors,” he said.

Mr Ch. Srikant of the Secunderabad General Bazaar Cloth Merchan-ts, said small and medium cloth merchants must pay Rs 2.5 lakh.

Mr Prakash said the GST would hit consumers as well, “As per our estimates, 25 per cent of traders will shut down their businesses which will impact direct and indirect employment of about 7.5 lakh jobs,” he said.