Weavers stare at heavy burden after GST cut on MMF fabrics

SURAT DILEMMA | New tax proposals may sound like a relief on paper but could spell financial nightmare for the thriving textile industry in the city

- Melvyn Thomas

The 56th meeting of the GST Council has delivered a shock to Surat's textile industry, as GST on man-made fiber (MMF) fabrics has been slashed from 12 per cent to 5 per cent. What sounds like a relief on paper has turned into a financial nightmare for the city's weaving community, which produces the bulk of India's synthetic fabrics.

Surat, known as the hub of MMF production, contributes nearly 60 per cent of India's output. With more than 55,000 powerloom weavers producing around 6 crore metres of polyester fabric daily, the numbers quickly translate into a crushing new tax liability.