Hyderabad: Due to the refusal to register under GST by Textile manufacturers and whole dealers and retailers, in Surat city, the businessmen are incurring a daily loss of Rs. 150-200 crore.
Individuals associated with textile industry say that so far, no tax was imposed on textile industry. As a protest, textile manufacturers, wholesale dealers and retailers have not registered themselves for GST. They have decided to extend this protest at all India level. A program of action would be finalized soon.
Mr. A. Prakash, Chairman, Telangana State Federation of Textile Associations told that recently a meeting of all India textile traders was held in New Delhi after which a representation was made to the central minister.
His reply is awaited. If negative response is given, all India protest would be launched. He further told that the textile traders are not against paying taxes but by imposing digital transactions, nearly 25% business would be blocked as a result of which many people would lose their jobs.
He cited an example that in the manufacture of a sari, there are many stages. When the manufacturers purchase thread, they have to pay taxes after which there is a stage of designing wherein, again tax has to be paid. The next stage is embroidery work for which tax is imposed. In this manner, tax has to be paid at 3-4 stages which are unbearable.
As far as digital transactions are concerned, 85% of the traders do not have computers and majority of them are illiterates. In Telangana itself, there are 30-35 thousand shops. If GST is implemented, 25% shops would have to be closed down.