Hit by GST, textile traders to observe ‘dark’ Diwali

Textile traders strip down and sit on protest at Sagar Market in Surat on Saturday. Express

This Diwali, over 150 textile markets in Surat will not be illuminated with decorative lightings as a mark of protest against the implementation of the Goods and Services Tax (GST). The textile traders, who have been protesting against the 5 per cent GST on cloths since the new tax regime came into force, have decided to observe a ‘dark’ Diwali, citing the impact of the GST on them.

“Textile traders have said that this year they will not decorate markets with colourful lights, with an intention to send message to the government that GST has turned their colourful Diwali into a dark one. The situation of small traders are pitiable. After Diwali, many such small traders may move to some other business or even opt for jobs,” Champalal Bothra, the secretary of Federation of Surat Textile Traders Association (FOSTTA) told The Indian Express on Friday.

There are over 150 textile markets with over 60,000 textile shops on Surat’s Ring Road from where finished fabric is sent across the country. Every year, textile traders and presidents of different textile markets decorate their markets with colourful tiny bulbs. The illuminated textile markets of Surat is a big draw among the locals.

Since the implementation of the GST, traders said that the daily production of cloth in powerlooms in Surat has reduced from 4 crore metre of grey cloth to 3 crore metre.

“The production has gone down in the weaving sector. There are over 6 lakh loom machines in Surat city, which produce over 4 crore metres of synthetic grey cloth. Many small weavers have reduced production by running the factory only during the day shift, while some of them have shut down their businesses and sold their loom machines as scrap. They are now searching for alternate work or business,” said Ashok Jirawala, president of the Federation of Gujarat Weaver Association.

“Factory owners with more than hundred machines are not facing problems. It’s the small weavers who have been hit by the GST,” Jirawala added.

According to traders, they are still confused about how to do the business under the new tax regime as before the implementation of the GST, textile business was exempted from tax.

They feel that their protests against the GST did not turn fruitful as even after several representations and meetings with the government, nothing has come out of it. A couple of days ago, GST Council member Yogendra Garg had visited Surat and met traders to guage the impact of the GST on textile and diamond sectors. Experts say that there has been poor response among the textile traders over GST registration.

“We performed havan today and prayed to God that good sense should prevail on the Central government,” said Bothra, adding that a large number of traders took part in the religious event.