Statewide shop shutdown over 18% GST on commercial rent, traders demand rollback

COIMBATORE: As part of a State-wide strike called by traders, thousands of shops downed shutters in Salem and Erode districts on Friday, raising their voices against 18 per cent GST on commercial property rental.

President of the Federation of All Trade and Industry Associations of Erode District (FATIA), VK Rajamanickam, said over 30,000 shops and industrial units remained shut in the district. The union is an apex body of 75 associations.

“The shutdown caused a Rs 100 crore loss in business, and over 2 lakh people sacrificed their daily salary for the cause. The State and central governments should come forth to scrap GST on rental buildings and roll back hiked property tax and power tariff,” he said.

As most of the shops and commercial establishments remained closed, the ever-bustling streets in Erode wore a deserted look. Similarly, in Salem, the sago units and rice mills downed shutters, expressing solidarity with the protest call by traders. “More than 25,000 traders downed shutters, causing a loss of Rs 150 crore,” claimed traders.

The scene was similar across the State as traders and shopkeepers closed their shutters. The protestors said that the rule, which was implemented on Friday, would drastically affect registered small businesses and shop owners, according to a Maalaimalar report.

They also said that the decision to go on strike comes after repeated requests to roll back the 18 per cent GST were ignored.

"We are already suffering due to the increase in property tax, garbage tax, underground sewage tax and electricity tariff," said the protestors.

Most shops in and around Omalur, Athur, Mettur, Vazhapadi, Edapadi, and Sankagiri remained closed, and the streets appeared deserted.

Traders association members said that GST on rent for commercial buildings will affect traders directly and the public indirectly and demanded that the resolution be rolled back by the central government.

The Bodi Traders Association, which was involved in the strike, ensured that all vegetable, grocery, markets, eateries, and tea houses under their purview remained shut.

As part of the strike, most shops in various areas of Madurai, Thirumangalam, Sivakasi, Srivilliputhur, Virudhunagar, Usilampatti, Theni, Chozhavandhan, and other places were closed, which affected the supply of essential goods.