It is due to the implementation of goods and services tax that the Federation of Surat Textile Traders Association (FOSTTA) is crying for help. The federation is claiming that due to the applicability of GST it resulted in job loss for over 4 lakh employees and workers.
Also, it is said that many of the textile units are running far below the installed capacity i.e. only 2.5 crore metres instead of daily production capacity of over 4 crore metres.
From past 18 months, the sales had seen a decline of around 30 to 40 percent along with delayed payments. It is stated that on an average, the surat textile industries offers 1.3 million workers a job to sustain but after the coming of GST, around 30 to 35 percent jobs are been lost.
Secretary of FOSTTA stated that “Two major changes ‘demonetization and GST‘ have affected the textile trade in Surat and as a result production has fallen by nearly 40%.”
Director of a textile mill mentioned that “Export orders are constantly declining due to refund issue and this has directly affected the Surat textile industry. Most of the units are working on a single shift in current season time.”
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