International Journal of Applied Research
Vol. 3, Issue 7, Part C (2017)
GST-A game changer for the textile sector in India
This paper is an analysis of what the impact of GST (Goods and Services Tax) will be on textile sector. It is an accepted fact that GST is not merely a tax change but a business change as it will impact all functions of an organization such as finance, product pricing, supply chain, information technology, contracts, commercials etc. Thus, it is imperative that all these functional teams should be aware about the GST. But the underlying question is what should these team members read/ refer for GST? There are mixed response, inexplicit arguments and opinions among the Manufactures, traders and society about the Goods and Services Tax (GST) to be implemented by Government of India. GST is a comprehensive, indirect, multi-stage, destination- based tax that will be levied on every value addition. The goods and services tax (GST) is aimed at creating a single unified market that will directly affects all sectors and sections of our economy. This is the biggest reform proposed in the tax regime of our country after independence. It is something that each of us must understand as it is going to affect our lives in a very significant manner. France was the first country to introduce GST in 1954. Worldwide, Almost 150 countries have introduced GST in one or the other form since now. India has chosen the Canadian model of dual GST. Introduction of GST could have a considerable impact on textile industry. It is one of key sector in Indian economy with a direct linkage to the overall growth of Indian and global economy. Textile plays a major role in the Indian economy India's textile market size measure in (USD billion). It contributes 14 per cent to overall index of industrial production (IIP) and 5 per cent to GDP. GST will bring vast changes in the textile industry of India. In this research paper and I have started with the introduction, in general of GST and have tried to highlight the objectives the proposed GST is trying to achieve. Thereafter, I have discussed the old indirect tax regime system and then an effort has been made to examine the impact on textile sector under GST regime and finally, the paper draws out a conclusion.
How to cite this article:
Jyotsna Oberoi. GST-A game changer for the textile sector in India. Int J Appl Res 2017;3(7):189-194.