Textile Traders Not to Seek GST Registration

Despite Goods and Services Tax Council accepting the demand to bring down GST rates on textile job work from 18 per cent to 5 per cent, a section of traders in the country's biggest man-made fabric (MMF) wholesale market in Surat have appealed to their fellow traders to stop purchasing fresh stock of grey to oppose the central government's failure in providing relief under GST to them.

Vyapari Sangarsh Samiti (VSS), which was formed on Saturday under the leadership of Tarachand Kasat, leader of the trading community, has appealed to the traders to abstain from purchasing grey fabrics and registering under GST.

A meeting called by textile traders association was stormy with most traders wanting to launch an agitation. It was unanimously decided in the meeting that the traders will adorn black ribbon on June 14 and keep the textile markets shut on June 15.

The MMF sector in the city manufactures around four crore metres of grey fabric per day on more than 6.5 lakh powerloom machines.

A delegation of Federation of Surat Textile Traders Association (FOSTTA) had gone to Gandhinagar on Friday to represent the higher GST rates to deputy chief minister Nitin Patel and member of GST Council from Gujarat, DP Vaghela. The FOSTTA office-bearers demanded that there should be uniform GST in the entire textile value chain, otherwise it will dent the margins of the traders and weavers leading to job losses in the industry.

However, most of the textile traders in the market are unhappy with the leadership of FOSTTA. During the meeting on Saturday, the traders shouted slogans against FOSTTA and demanded a separate committee to fight out the GST issue.

Vyapari Sangarsh Samiti president Tarachand Kasat told TOI, "We are demanding uniform GST structure in the entire textile value chain. The traders will have to pay 5 per cent GST, but they won't be able to get input tax credit. On the other hand, the cloth manufactured by composite units will be much cheaper. This will lead to joblessness in the sector. We have appealed the traders to clear their old stock and payments. After the bandh on June 15, we will meet the officials concerned in the government. If the GST Council fails to accept our demand for uniform GST in textile sector, we will launch an indefinite agitation from July 1."