Home / Knowledge / News / Textiles / Surat textile traders' sales fell 40% post GST: FOSTTA
Surat textile traders' sales fell 40% post GST: FOSTTA
May '18
The implementation of the Goods and Services Tax (GST) has led to a drop of 30-40 per cent in the textile sales in Surat, according to the Federation of Surat Textile Traders Association (FOSTTA). The association claims that the new tax regime has led to a loss of 4 lakh jobs, while daily production has decreased from 4 crore metres to 2.5 crore metres.

A number of textile units in Surat are running below their respective capacities and traders are facing payment delays in the aftermath of GST rollout. GST and demonetisation have affected the textile trade in Surat, resulting in a 40 per cent decrease in production, said media reports quoting Champalal Bothra, secretary, FOSTTA.

The textile industry of Surat employs about 1.3 million workers, but 30-50 per cent of the employees have lost their jobs after demonetisation and GST. The association said that textile and related industries like embroidery, power looms and artisans are losing jobs.

FOSTTA has also written to Union textile minister Smriti Irani, informing her about the situation in Surat and requesting government’s support and intervention.

A majority of the textile and other related units in Surat are unorganised and are thus facing problems in implementing the structure of the new tax regime. This is leading to a decline in production as well as demand. Artisans skilled in embroidery are losing their jobs, while textile labourers are returning to their home states due to lack of work, said Manoj Agarwal, president. FOSTTA.

Exports have also been affected due to GST. Multiple export orders have been cancelled as refund was not received on time, and payment delays have led to a shortage in working capital. The association estimates that exports have declined 60 per cent after GST implementation. (KD)

Fibre2Fashion News Desk – India

Must ReadView All

British luxury brands eye US market post Brexit

Fashion | On 13th Nov 2018

British luxury brands eye US market post Brexit

British luxury brands are exploring the US market to forge new and...

FDI to be hit if EU withdraws GSP benefit to Myanmar: DICA

Apparel/Garments | On 13th Nov 2018

FDI to be hit if EU withdraws GSP benefit to Myanmar: DICA

Foreign direct investments (FDI) in Myanmar will be hit if the...

UK parliament panel asks fast fashion firms for answers

Apparel/Garments | On 13th Nov 2018

UK parliament panel asks fast fashion firms for answers

The Environmental Audit Committee in the United Kingdom has called on ...

Interviews View All

Top executives, Textile industry

Top executives
Textile industry

Knowledge sharing platform needed for sustainable water management

Arvind Saraf, Triveni Sarees

Arvind Saraf
Triveni Sarees

e-Commerce is still evolving fast with constant flux and surprises

Stefan Warnaar, Peak to Plateau

Stefan Warnaar
Peak to Plateau

People are willing to pay for quality and performance

Himanshu Jariwala,

Himanshu Jariwala

J Korin started as a partnership firm with four powerlooms in the textiles ...

Luciano Sardini,

Luciano Sardini

A consolidated reality in Italy and internationally, IMA Spa is well-known ...

Carmen Silla,

Carmen Silla

Leading the transformation of the textiles industry with disruptive...

Silke Brand-Kirsch, Schlegel und Partner

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Luis Quijano, Liberty University

Luis Quijano
Liberty University

Focusing on bold patterns and colour palettes, Luis Quijano, a student at...

Mark Paterson, Technical Absorbents Ltd

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Sidharth Sinha, Sidharth Sinha

Sidharth Sinha
Sidharth Sinha

<b>Sidharth Sinha</b> has contributed to the successful rebirth and...

Varsha Wadhwa, VW

Varsha Wadhwa

Coming from a family that ran a business of jute and linen mills since...

Robert Brunner, Devereux

Robert Brunner

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


Leave your Comments

November 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category

Related Categories:

Advanced Search