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Surat’s GST Hit Textile Traders Plan A Black Diwali Protest Without Any Illumination

• By  Textile Excellence
• April 10, 2017

More than 150 textile markets across Surat will not be illuminated with decorative lights to mark a ‘black Diwali’ protest by textile traders against the implementation of the Goods & Services Tax (GST), according to industry sources.

Federation of Surat Textile Traders Association (FOSTTA) Secretary Champalal Bothra stated that the textile traders’ aim is to send a strong message to the government that GST has turned their colourful Diwali into a dark one, adding that many small traders may shut down their businesses and move to some other trade or even opt for jobs.

There are more than 150 textile markets with over 60,000 textile shops on Surat’s Ring Road from where finished fabrics are sent across the country.

Traders said that after implementation of GST, daily production of cloth in Surat power looms has reduced from 4 crore metres of grey cloth to 3 crore metres. There are over 6 lakh loom machines in Surat city, which produce more than 4 crore metres of synthetic grey cloth.

According to Federation of Gujarat Weaver Association President Ashok Jirawala, several small weavers have reduced production by running their factories only during the day shift, while some of them have shut down their businesses, sold their loom machines as scrap and are looking for alternate work or business.

However, he added that factory owners with more than hundred machines are not facing problems while small weavers have been severely hit by GST.

Traders said that their protests against GST failed and there was no outcome even after several representations and meetings with government officials, adding that recently, a GST Council member Yogendra Garg had met them to assess the impact of GST.

Textile Excellence