How did GST change the Surat textile market after 2017?

The introduction of GST in July 2017 significantly impacted the Surat textile market — one of India's most vocal opponents of the new tax system initially. Key changes:

Short-term disruption (2017–2018):

• Large-scale market shutdowns and protests when 5% GST was initially applied to fabrics under ₹1,000
• Many small traders struggled with compliance requirements — digital invoicing, GSTIN registration, monthly returns
• Temporary reduction in trading volumes as the market adapted

Long-term structural changes:

• Formalisation of trade — more businesses now issue proper GST invoices, enabling buyers to claim Input Tax Credit
• More transparent pricing — easier to compare true costs across suppliers
• Export benefits — IGST refund mechanism improved export competitiveness
• Consolidation — very small informal operators found compliance difficult and exited, strengthening mid-size established businesses