Impact of GST on Textile Industry

The GST regime brings forth transparent and simple taxation process. It is fast-paced and saves time from filing taxation at multiple levels for goods and services offered by the textile industry. For a country as vast as India, introduction of GST is the first step in making the taxation system more efficient. With the implementation of GST, movement of goods and material within the states will be much easier. Several local state taxes that are levied on the borders of states will be now eliminated and free movement of goods will be seen. This will see more efficient supply chain dynamic across industries. It is expected that the tax rate under GST would be higher than the current tax rate for the textile industry. Natural fibers (cotton, wool) which are currently exempted from tax, would be taxed under GST. Despite this, the¬†textile industry as a whole would benefit from the…