An important meeting was held on April 28, 2026, at the FOSTA office with senior officials from the GST department regarding GST issues related to the city's textile market. The aim of the meeting was to understand the tax-related problems faced by traders and effectively communicate them to the government.
Present from the GST department were Principal ADG Sushil Kumar, Joint ADG Chanchal Tiwari, and Assistant Commissioner of CGST Kamal Agarwal. Several officials from FOSTA, including General Secretary Dinesh Kataria, were also present. Dinesh Kataria mentioned that traders are facing significant difficulties due to the disparity in GST rates applicable to lehengas in the Surat textile market.
According to the current system, a 5% GST is applicable on lehengas priced up to ₹2499, while the rate increases to 18% for lehengas priced at ₹2500 or more, complicating the tax system. Additionally, the 18% GST on auxiliary products related to lehengas, such as trolleys, foam, photography, paper cartons, and packaging boxes, causes traders to repeatedly face difficulties in tax calculations. FOSTA suggested that all these products be included under a uniform tax structure with a 5% GST.
They also demanded an increase in the 5% GST threshold for lehengas to ₹7500 to provide relief to small and medium traders. The proposal for establishing a Textile University and Research and Development Center in Surat was also discussed, which aims to provide new direction to the industry and opportunities for youth in the manufacturing sector. Issues related to ITC-04 were also discussed.
Officials listened seriously to all the problems and suggestions from traders and assured that efforts would be made to address them at a higher level. FOSTA will soon release a survey form to collect detailed information from traders both online and offline. The purpose of this survey is to gather grassroots issues and present them in an organized manner to the government.
This initiative is considered an important step towards making the GST system simpler, more transparent, and business-friendly. Many officials from FOSTA and representatives from the textile market were present at the meeting.
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