Cotton ginners threaten strike on Dec 15 if 5% GST not withdrawn .

Cotton ginners have threatened to go on strike on Dec 15, protesting the 5% goods and services tax under reverse charge mechanism, Atul Ganatra, president of Cotton Association of India. On Nov 14, the Centre had notified the inclusion of raw cotton under the 5% GST slab. Cotton Association of India had on Monday convened a meeting in Mumbai with all trade bodies to discuss the issue of reverse charge mechanism under the new indirect tax regime. Under the reverse charge mechanism, the supplier is not liable to pay any tax. Hence, the receiver, besides paying the supplier for the goods or service, separately pays the government the applicable tax.