The power loom weaving sector in the country's largest man-made fabric (MMF) centre in the city witnessed around 50,000 workers becoming jobless in the last two months, the power loom weaving leaders claimed.
50,000 workers were rendered jobless because more than 80,000 power loom machines had to be scrapped and over 50,000 units shut in the last couple of months due to the implementation of Goods and Services Tax (GST) in the country.
Industry leaders stated that majority of weavers moving out of the business are those who were doing job work for the master weavers for the last many years. The master weavers are not ready to bear 5 per cent GST on job work and have stopped giving work to weavers. On the other hand, there are many weavers who have taken GST registration, but the unregistered textile traders want the weavers to supply grey fabrics without bill.
Federation of Gujarat Weavers Association president Ashok Jirawala says that a detailed report on GST impact on power loom weaving sector has been prepared and as of now 50,000 workers have been rendered jobless and 80,000 machines sold in scrap.