New Delhi, July 6 (KNN) The Goods and Services Tax (GST) that was implemented on July 1 has attracted sharp opposition from the textile industry in Gujarat. Demanding exemption from the GST, the traders kept their shutter shut for the third consecutive day paralysing the textile MSMEs in the region.

Talking to KNN, Mayank Jain, a textile entrepreneur explained the situation. He said that for years the textile industry enjoyed exemption,the coming of GST has led the industry of Surat in a state of shock because of which there are protests.

Explaining further he said that most of the units in the region are not integrated, for integrated players GST can prove to be beneficial; whereas for a small scale unit it becomes difficult to pay the huge tax rate.  He however acknowledged that the GST in long run can be a good step towards the growth of the sector, but for now it is very welcoming.

Jain added that it is disheartening to see the textile industry that is world famous take to streets to get themselves heard, there is a need for a middle path so that things can restore to normal.

While the market continues its strike for the third day, there are mixed responses among the traders community. Not all traders are against the tax reform

Talking to KNN, P.M Shah, President of the Southern Gujarat Chamber of Commerce & Industry said that GST is finally implemented and can’t be avoided, therefore protesting and demanding a roll back is impractical.  He further added that the revision of rates is however something that the traders community should have emphasized instead.

“More than half of the traders community in the region is willing to come into the GST chain, not everyone is against it. Yet there are some concerns that the government should take into consideration” said Shah.

Also earlier this week industry body Confederation of Indian Textile industry (CITI) protested the 18 per cent tax rate on manmade fibre and yarn and demanded it to be shifted under a 12 per cent tax rate. (KNN/ DA)