Textiles - the Black Supply Chain

So many textile traders in Surat and other parts of India are doing strikes against GST. Let me enlighten you, the textile supply chain largely is all black in colour in this country.

The textile or garment manufacturer, buys all raw materials in black and he has to sell to distributors also in black mostly, hence many of the even small manufacturers 100 CR turnover have tons of black money and benami properties.

GST must clean this system up and also the benami properties bill should make them pay for past tax evasion.

Govt should not give in. more  

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I agree with Amit Mishra Govt must NOT give in more  
I wonder, when every body knew that during Pre-GST regime there were tax evasion & black money dealing of Surat Cloth Traders, what was the Sales Tax, Income Tax departments were doing? Was it that all corrupt peoples were sharing the black money? more  
How this textile business is done by other countries? If ours has greater share, how the business earnings apportioned between states, Centre and the business people. What is the specific reasons of doing mostly in Black? Needs louder thinking & brain storming session by experts. If the traders benefitted in Geometric progression and Govt in arithmetic progression , who is responsible? Govt should constitute a high level committee to plug loopholes benefitting traders & Govt equally. more  
I agree with Mr. Amit Mishra. Moreover, if they are small traders as they are claiming, then their turnover would be less than the limit stipulated for application of GST. So why are they making so much noise. more  
The main issue faced by Textile synthetic Industry is the fragmented nature of business. This is so especially from spinning on wards. The value addition is done is several stages, at different locations, small quantities, different ways( job work, trading, own manufacture etc ), and so on till it is converted in to garments. So what is needed is some modifications to facilitate the process and make is user friendly. Though there is tax evasion by many it should not make GST rigid to an extent that Industry is choked. It is worth noting that Textiles is biggest employer after Agriculture and also the entire value addition remains in the country apart from several advantages we have over other countries. more  
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