Protesters walked for three km through the city's main textile market, wearing black bandannas.
Over one lakh people took part in the march, claimed Gaurav Shrimali, convener of 'GST Sangharsh Samiti'.
The protest will continue until the government accepts their demand to roll back five per cent GST, he said.
Surat is one of the major textile trade hubs in the country.
"We have no issue with GST on yarn, but five per cent GST on subsequent value addition will make us suffer financially," said Shrimali.
On Monday, the organisers plan to distribute food to daily-wage labourers who work in the textile industry and who are suffering because of the strike, Shrimali said.
Police commissioner Satish Sharma said that tight security had been provided to ensure that the protest passed off peacefully.