more have been insulated from the gstthe question however is why should a 5 tax cause such an extreme distress to the textile industry traders cite various reasons from not getting refund on duty inversion inverted duty is one when tax on finished product is lower than that on the raw material blockage of working capital because of purchasesell mismatches and the most dreaded process of filling up a complicated form called itc4 mandatory for securing tax credit getting tax credit lowers the tax burden of a trader union finance secretary hasmukh adhia has another view on why surat traders are opposing gst traders are not willing to come under the tax net mainly because of the fear that they will have to report their correct turnover which may have consequence on the direct tax side says adhia who as the head of the revenue department is also the exofficio secretary of the gst council the apex body that approves changes in the indirect tax regimebut a number of traders told et magazine they were paying income tax honestly and added that the transition from cash to cheque transactions was taking a toll on business volumeunlike most textile units the diamond industry is better organised the gst has just been an addon procedure for this sectionimported raw diamonds land in mumbai through the banking channels before being ferried by the angadias the unofficial courier men to surat the diamonds are processed in surat saurashtra and other parts of gujarat before being exported angadias charge fee in cash giving scope for manipulationin fact the governments 025 gst levy on rough diamonds is basically meant for tracking the transit of diamonds rather than mopping up any additional revenue for the government three percent gst on polished diamonds was a concern for us says babubhai n gujarati president of surat diamond association but i knew the government would understand the gst council reduced the rate to 025 in january this yearforget gst this diamond industry seems unmoved by even the nirav modimehul choksi scam flamboyant diamantaire nirav modi and his uncle mehul choksi are alleged to have defrauded punjab national bank of over rs 13000 crore both are absconding will more such diamond frauds crop up in the days to comein 2003 we had the chirag diamonds case the company declared itself bankrupt and the owner mahendra gandhi mysteriously disappeared from the country says damjibhai g mavan secretary of the citys diamond association now we have nirav modi but the diamond industry is resilient enough to overcome such turbulences surats diamond business is well above gst or nirav modis in diamond trade a polisher can become a factory ownerbabubhai n gujarati who rose from being a diamond polisher to a factory owner explains why gst has no impact on the diamond businesses in surati started as a polisher in late 60s working over 10 hours a day it was quite a struggle till i set up a diamond factory in surat in