Textile traders from the man-made fabric hub of Surat have urged Prime Minister Narendra Modi to create a special committee to study and analyse the impact of the Goods and Services Tax (GST) on the textile sector. They have urged that the government should remove traders and weavers from the purview of GST, which should be levied only at the yarn stage.
The output of man-made fabric has come down from around four crore metres per day to less than two crore metres in the July-April 2017-18 period, i.e. post implementation of the GST, the Federation of Surat Textile Traders’ Association (FOSTTA) office-bearers said in a letter to Modi.
The sale of polyester fabric, including saris and dress material, has reduced by nearly 40 per cent, and the export of finished fabrics has decreased by around 28 per cent in the first ten months since GST was implemented on July 1, 2017, the letter added.
More than 90,000 powerloom machines have been sold in scrap during the ten-month period, as import of fabric from China and other countries has become cheaper, FOSTTA said, according to a report in a national daily.
Since July 1 last year, over 60,000 embroidery machines have been shut rendering thousands of women jobless, the letter added.
The letter urged the Prime Minister to reconsider the government’s decision to include the textile sector in the GST regime. (RKS)