Evaluating the impact of GST on the textile industry in India
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Authors
Shetty, Saahil Suresh
Issue Date
2019
Degree
MBA in Marketing
Publisher
Dublin Business School
Rights holder
Rights
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Abstract
GST reform in India has completely changed the perspective of indirect tax system bringing majority of the taxes on goods and services levied on traders, manufactures and sale and consumption of goods and services into single tax umbrella. Ultimate purpose of integrating various indirect taxes into single tax domain under the regime of GST is to provide transparency and ease to users and support to the growth of Indian economy. Majority of the suppliers or retailers still display their unwillingness to get registered for GST to avoid burden of new rules and additional expenses of accounting as per the GST rules. Small level traders, manufacturers and wholesalers do not seem to be happy with the GST as they feel tax rates are higher and thus don’t willing to comply with GST. It has also been reported that small to medium level traders still remain confused about migration process from earlier tax system to GST and billing. There is uncertainty or low clarity on input tax credit among retailers or traders in the textile industry. The current overall impact of GST on Indian textile industry has displayed negative responses from traders however it creates a need for more involvement and association between the Indian government and the textile industry to find out actions or measures that could be taken to create positivity towards GST among traders. This study demonstrates impacts of GST on Indian textile industry adopting qualitative approach. Investigation has been made using in-depth interviews from traders and customers to find out impacts of GST implementation in the industry. Findings suggest that in earlier months, there were negative impacts of GST in the industry as it has affected productivity, sales and performance of several business in the industry.