The recession has hit 14000 crore rupees on the textile business of Kanpur called Manchester of the East. This daily turnover of Rs 100 crore has fallen by 40 per cent. Kashi Prasad Sharma, chairman of Kanpur Textile Committee, is in the most recent trouble of number-one textile business in UP. He says that he has not seen so much silence in 54 years of business life. Today it is difficult to earn far away, to make up for the daily expenses. Billions of rupees are stuck in GST refund. Fellows have also decreased due to lack of work.
According to Srikrishna Gupta, senior vice-president of the textile committee, the root cause of the slowdown is GST and inflation. GST has been imposed on clothes for the first time. The businessman is stuck with billions of rupees in refunds. Where to do business when there is no money?
According to Textile Committee Principal Secretary Laxman Sehgal, there is five percent GST on clothes up to Rs 1000. As soon as the shopkeeper sells above 1000 by adding profit, then he gets 12% tax. This seven percent gap has broken the back of the textile market.
There is also a big difference in the tax of synthetic yarn and fabric made from it. There is 12 per cent tax on yarn and five per cent on cloth made from this.
