28% GST: Hardware traders observe bandh

Hardware traders across Gujarat observed bandh on Friday to oppose the proposed 28% goods and services tax (GST) imposed on hardware items. Around 700 hardware traders kept their shutter down in Ahmedabad. They say that these items are used for household consumption, so it should have lower tax rate. 

Meanwhile, trade bodies have approached members of GST Council urging them to reduce the tax slab and expect that their concern will be considered during the Council meeting on Sunday.

Dariapur, the hub of hardware items in the city, remained closed on Friday. Traders also sat on dharna in the morning. Hardware items till now had an excise duty of 5% but the tax incidence has been raised to 28% under GST regime. “We had met officials of state government. We expect the rates to be reduced during the meeting of GST Council on Sunday,” said Deepak Shah, VP,  Akhil Gujarat Hardware Association.

He said the bandh was observed across Gujarat including Vadodara, Rajkot, Surat, Jamnagar and Mehsana. Traders are demanding 12% GST slab.