GST impact: Going gets rough for Surat’s diamond, textile traders

The impact of GST is particularly stark in the highly fragmented synthetic textile industry, which attracts different GST rates at different stages of production and sale

At 40, Ashish Sukharawala has become an insurance agent and is still learning the ropes. Until recently, he was a second generation weaver with 100 powerlooms in an industrial estate in Surat.

However, the heavy tax burden under the new goods and services tax (GST) regime and the resultant losses in his business have forced Sukharawala to sell his looms for scrap and rent out his premises to a plastic trader. Sukharawala’s story is being replicated across Surat’s textile and diamond industries. In the one year since the GST kicked in, many of the city’s powerloom owners …

source:https://www.business-standard.com/article/economy-policy/gst-impact-surat-s-diamond-traders-and-weavers-see-no-thread-of-hope-118062400602_1.html

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