Textile workers in Bhiwandi — weavers, technicians, daily wagers and laborers — have been hit hard by the implementation of GST. Textile units are shutting down. There is no yarn available amid the chaos around GST. Bhiwandi is one of India’s largest textile hubs. The industry, which had always been exempt, is reeling from the impact of being brought under the new tax regime.

Burdened by unsold stock, weavers have stopped operations. Over the past 20 days, around five lakh power looms are idle in Bhiwandi. Weavers, technicians and workers from Bihar, UP, West Bengal and Orissa form a large part of the workforce in Bhiwandi. Workers usually come with targets to earn a certain sum to pay off a loan or for a daughter’s wedding. Since there is no work, they have started leaving.

Under the new tax regime, master weavers have to pay taxes for buying yarn — 18 per cent on manmade fiber yarn and five per cent on cotton yarn. This is apart from a five per cent tax on services. If loom owners pay five per cent on each of the ten services in our looms, their manufacturing cost will increase by over 15 per cent. This will not be set off by the tax levied on the product and they will have to bear the extra cost.