Surat: In a first ever post-Goods and Services Tax (GST) impact in the world's largest diamond cutting and polishing centre in Surat, a diamond manufacturer has defaulted on payments to the tune of Rs 100 crore to over 50 diamond merchants and manufacturers on Thursday.Surat Diamond Association (SDA) confirmed the default after a detailed inquiry on Thursday. SDA office-bearers said the defaulter was running a diamond unit at Nandu Doshi ni Wadi in Katargam for the last many years and belongs to Damnagar in Amreli district. In the last few months, the defaulter had purchased rough and polished diamonds from the market. Unable to pay the outstanding dues to the tune of Rs 100 crore, the defaulter disappeared from the market by closing his manufacturing unit.Sources said at least 100 diamond workers have been rendered jobless due to the shutdown of the factory in Katargam.An office-bearer of SDA told TOI, "The defaulter was operating the unit in Katargam for the last many years. He disappeared from the market two days ago and the payment dues are to the tune of Rs 100 crore. We have circulated messages in Amreli district to locate the defaulter. There are a total of 50 creditors who have been cheated by him."Diamond industry analyst Aniruddha Lidbide said, "GST is posing a big challenge to people in the diamond industry. Earlier, the rough diamond import had no duty. But post-GST, rough diamond imports will attract 0.25 per cent GST. Also, there is 3 per cent GST on sale of polished diamonds, 5 per cent on job-work and so on. A huge number of small manufacturers will find it difficult now as there was no compliance earlier."

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