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Surat's textile hub consolidated as small players failed to survive GST

This ground report from the diamond city captures the travails of small-scale units

Surat, Textile
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A big blow to the industry in the first year was that even though the conversion of texturised yarn into grey fabric attracted five per cent GST, the weavers could not avail of the input tax credit refund.

Vinay Umarji Surat
For 37-year-old Monty Manghani, the year 2017 was a milestone. After years of struggle, the annual revenues from his trading unit in Surat, which houses the country’s largest cluster of synthetic textiles, was about to touch Rs 1 crore. 

But Manghani’s success proved to be short-lived. The government implemented the Goods and Services Tax (GST) in July that year and the new tax structure became a challenge for his small unit. Eventually, he was forced to shut shop and team up with his merchant manufacturer father. The duo are now posting a business turnover of nearly Rs 2 crore.

The

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First Published: Jun 29 2022 | 6:19 PM IST

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