Organized players in textile markets happy with GST

Surat: While majority of textile markets in the country's largest man-made fabric (MMF) wholesale market have been observing 'Black Diwali' by not illuminating their respective market buildings as mark of protest against the Goods and Service Tax (GST), the organized players have come out and stated that Diwali sales were good compared to previous year.

Nearly 20% of the traders feel that this was the most vibrant Diwali for them in the last five years. The reason being that the biggest problem of returned goods was over, payment issues were solved and that the cases of defaults was reduced after GST was implemented from July 1.

Owner of Manbhari Prints at Surat Textile Market (STM) Narendra Saboo told TOI, "The organized players like us feel that GST has proved beneficial for the textile trade. Those who were operating business applying wrong practices are facing problems. Around 70% of the traders in the markets are unhappy as they do not want to comply with the GST."

Saboo stated, "The biggest issue of defaults in the textile market will reduce to a great extent after Diwali. Now, the traders, weavers and textile processors will deal with those having the GST registration. The GST transactions will be recorded by the government and its agencies. However, there are less chance of fraud and cheating."

Managing director of Laxmipati Group Sanjay Saraogi said, "This time Diwali sales is much better than the previous year. We have received huge orders from other states and even abroad. Now, we feel that it is a win-win situation for the traders as entire trade has come under the tax net."

On the other hand, a large section of traders' community is criticizing the central government for its false promises on resolving the GST issues.

The textile traders questioned BJP MLA from Majura constituency Harsh Sanghavi after he posted a picture of one of the textile markets illuminated with colourful lightings.

"The BJP MLA is trying to portray that all is well in the textile industry, but he is wrong. He doesn't know the ground reality. The entire traders' community, barring the organized players, is worried over the GST compliance," a textile trader said.

by via Surat News, Latest Surat News Headlines & Live Updates - Times of India