Since the inception of GST, the Surat textile owners are facing some complicated questions from their clients. These issues have forced their businesses to face the death knell said the traders. They have blamed the new tax regime.
The traders are concerned about the tax implementation which with the highlight on formalizing trades would end up widening the tax net and introducing transparency. Additionally, they believe that GST implementation would increase the paperwork of the trade making the process lengthy.
The traders who have applied for the GST number have done so grudgingly. Ganesh Chaturthi would mark the beginning of the festive season which would continue till November. There is no time to protest said the traders. They are losing business due to GST.
The traders have gone on strike after the implementation of GST. However, the protest has been canceled when Arun Jaitley promised that the council would sit with the rates and would review everything, considering their demands. However, the finance minister has refused to decline the tax entirely, quoting that the move would break the tax chain.
GST Council has reduced the rate of tax for job work of third party services including stitching and embroidery. The tax rate has been decided at 5% instead of 18%. However, the reduced tax rate has failed to make the traders happy, as it has not addressed most of their demands.
Surat is a historic city which has gained fame for textile manufacturing. Supportive government policies have helped the city and its trade grow. Surat textile industry has faced confusion about the impact of GST on their business. Overall there is a concern which every trader has expressed. The concern is regarding the accounting.
The biggest problem with GST and its implementation is the education level of the Surat traders. Most of the people in the textile trade are not educated enough to deal with the complexity of GST.
In 2014 and 2015, India has imported apparel of approximately $2.62 billion from China. The traders have demanded that the country should have an anti-dumping rule for China apparel import. They said the many textile factories had to go on a shutdown phrase for a few months due to Chinese material imports.
However, the commissioner Kavita Gupta has rejected the complaint that the Surat traders are losing their businesses due to Chinese import.
Traders who did not wish to reveal name said that – I loved Modi. We supported Modi like no one did and saw what he has done to us.