Footwear traders and manufacturers across India are uniting against the imposition of 12% GST on footwear. Despite repeated appeals to central ministers and local MPs, the government has yet to take serious steps to reduce the GST on shoes and sandals. The Karol Bagh Footwear Association’s President, Dharmapal Arora, stated that manufacturers from various cities gathered in Agra, all demanding that the GST on footwear be reduced from 12% to 5%.
The Core Issue: Why Traders Are Demanding a GST Reduction
Footwear is as essential as food, clothing, and shelter, argue the traders. Previously, under the VAT system, shoes priced under ₹1,000 were exempt from tax. When GST was introduced under the “One Nation, One Tax” system, the tax on shoes under ₹1,000 was set at 5%, which was accepted by the industry without much resistance. However, the recent hike to 12% GST on all types of footwear has sparked widespread discontent among traders and manufacturers alike.
Nationwide Movement Gaining Momentum
The All India United Footwear Federation, along with other regional associations like the Agra Shoe Factories Federation, have organized a large assembly in Agra. Traders from Latur, Kanpur, Jaipur, Bhopal, Punjab, Gujarat, Tamil Nadu, Telangana, Haryana, Assam, and Vijayawada participated in the protest. The protest was led by prominent industry figures like Vijay Sama and Anil Arora, who made strong appeals to the government to reconsider the GST rates.
Representatives from the Karol Bagh Footwear Association, including General Secretary Preetpal Singh, Vice President Sanjay Arora, and Joint Secretary Munna Poddar, also joined the demonstration in Delhi to show their support.
Impact on the Footwear Industry
The increase in GST to 12% is perceived by many in the industry as a move that could stifle growth and make it harder for traders and manufacturers to stay competitive, especially in a market where footwear is a necessity. The unified voice of traders from across the country is sending a strong message to the government that this tax hike is not acceptable and needs to be reconsidered.
Summary of Key Points
Aspect | Details |
---|---|
Current GST Rate | 12% on all types of footwear |
Previous GST Rate | 5% on footwear priced under ₹1,000 |
Traders’ Demand | Reduce GST from 12% to 5% |
Key Regions Involved in the Protest | Latur, Kanpur, Jaipur, Bhopal, Punjab, Gujarat, Tamil Nadu, Telangana, Haryana, Assam, Vijayawada, and Delhi |
Organizations Leading the Protest | All India United Footwear Federation, Agra Shoe Factories Federation, Karol Bagh Footwear Association |
Key Figures | Dharmapal Arora, Vijay Sama, Anil Arora, Preetpal Singh, Sanjay Arora, Munna Poddar |
Main Concerns | Increased tax burden on essential goods, threat to industry growth |