Indian Textile Industry Stands United Against GST Implementation On Fabric
Perfect Sourcing|July 2017

Strikes ends After Discussions with FM; Business to Resume in Few Days.

Indian Textile Industry Stands United Against GST Implementation On Fabric

30th June 2017 was indeed historic as India witnessed the biggest tax reform in 70 years of Independence. Goods and Service Tax is an indirect Tax applicable throughout India which cascaded multiple taxes levied by State and Central government, after 16 long years of discussion and debate on the pros and cons of GST Government of India gave a thumbs up to the bill and from 1st july 2017 28% Goods and Service Tax got implemented pan India.

A single tax will abolish the existing multiple taxes that differ from one state to another. Economists are predicting that the tax reform will change the way businesses are conducted in India and will bring about only good things to the country. Anything new comes with challenges, and Government is facing vehement protest against GST, sporadic yet effective.

Amidst of staging demonstration against GST from different sectors, the textile industry seems to be the most worked up, as under the new taxation system that was rolled out on July 1, it was decided that garments under Rs 1,000 would attract a five percent charge, while those above Rs 1,000 would attract a tax rate of 12%. Also, a five percent tax would be levied on fabric with no refund of unutilized input tax credit.

This story is from the July 2017 edition of Perfect Sourcing.

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This story is from the July 2017 edition of Perfect Sourcing.

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