
Traders across the country to stop trade with Pakistan — Decision taken by trade leaders from 26 states at CAIT’s National Governing Council meeting in Bhubaneswar 28% GST should be levied on Quick Commerce and E-Commerce companies
The two-day National Governing Council meeting of the Confederation of All India Traders (CAIT) was concluded on 25th and 26th April in Bhubaneswar, attended by over 200 prominent trade leaders from 26 states across the country. In the meeting, a unanimous decision was taken to completely halt any kind of trade with Pakistan. At the same time, it was also demanded from the government and GST Council that immediate action be taken against the malpractices of Quick Commerce and E-Commerce companies, and that a 28% GST be imposed on them.
CAIT Secretary General and Member of Parliament from Chandni Chowk, Shri Praveen Khandelwal, informed that a unanimous resolution was passed in the meeting condemning the terrorist incident in Pahalgam in the strongest terms and calling for a complete boycott of all trade relations with Pakistan. The resolution stated that, in protest against the brutal killing of innocent tourists in Pahalgam, the business community has decided to immediately cease all forms of imports and exports with Pakistan. Traders expressed full support for the strong actions taken by Prime Minister Shri Narendra Modi against terrorism and urged that the perpetrators and their supporters be given the strictest possible punishment.
After the Pulwama terrorist attack in 2019, trade relations between India and Pakistan severely deteriorated, leading to a significant drop in bilateral trade. From a peak of nearly $3 billion in 2018, the trade volume fell to about $1.2 billion in 2024.
Between April 2024 and January 2025, India exported about $500 million worth of goods to Pakistan, mainly pharmaceuticals, chemicals, sugar, and auto parts, while imports stood at merely $0.42 million. Now, traders have resolved to completely end this trade as well.
Trade leaders emphasized that while halting trade with Pakistan may temporarily impact some exporters, in the aftermath of the Pahalgam attack, continuing trade with or through a hostile country is completely unacceptable. They asserted that the trading community of India is prepared to bear any economic loss or cost necessary to uphold the unity, integrity, and security of the nation.
In another resolution passed during the meeting, CAIT accused E-Commerce and Quick Commerce companies of continuously violating rules and laws, selling counterfeit products, and conspiring to destroy the businesses of small traders. CAIT demanded that the government immediately implement the E-Commerce policy and the rules framed under the Consumer Protection Act and the Foreign Direct Investment (FDI) policy.
The resolution also called for imposing a 28% GST on Quick Commerce and E-Commerce deliveries, stating that such convenience should be treated as a luxury and taxed accordingly.
In view of the flaws in the current GST system, trade leaders across the country urged for a complete review and simplification of the GST structure. Traders demanded a comprehensive review of GST to expand the tax base and to revisit and rationalize the different tax slabs, making the system simpler and more business-friendly.
All trade leaders further demanded transparency and accountability in digital commerce. CAIT emphasized that the technology, pricing, and vendor selection process of E-Commerce platforms should be transparent and accountable, ensuring the protection of small grocery shop owners and offline traders.
Shri Khandelwal said, “In the current circumstances, the business community across the country stands united and ready under the leadership of Prime Minister Shri Narendra Modi to take any necessary step for protecting the sovereignty and commercial freedom of the nation.”
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