Académique Documents
Professionnel Documents
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ON
MS.PALAK KANOJIA
ASSISTANT PROFESSOR
HANSRAJ COLLEGE
SUBMITTED BY:
HARSH GAUTAM
ROLL NO.2100
B.COM. (HONS.) III YEAR SECTION4
HANSRAJCOLLEGE
UNIVERSITYOF DELHI, Mahatma Hans Raj Marg, Malka Ganj, Delhi – 110007,
India.
CERTIFICATE
This is to certify that Mr. Harsh Gautam has worked and completed his project work for the
degree of B.Com (Hons) on“GST AND ITS IMPACT ON TEXTILE INDUSTRY” under
my supervision.
Name of Guide
Date of submission
1
DECLARATION
I the undersigned Mr. Harsh Gautam here by, declare that this project work entitled “GST
and its Impact on Textile Industry” is a result of my own research work and has not been
previously submitted to any other university or any other examination. I hereby further
declare that all information of this document has been obtained and presented in accordance
Signature
Name
CollegeRoll No.
Year
Date of Submission
2
ACKNOWLEDGMENT
I would like to express my special thanks of gratitude to my teacher Ms. Palak Kanojia who
gave me the golden opportunity to this wonderful project on the topic Goods and Service
Tax, which also helped me in doing a lot of research and I came to know about so many new
things I am really thankful to them.
Secondly I would also like to thank my parents and friends who helped me a lot in finalizing
Name:
Date
3
TABLE OF CONTENTS
TITLE PAGE NO.
CH.1 INTRODUCTION 5
1.1 INDUSTRY FEATURES 5
1.2 EMERGING CONTOURS OF GST 6
1.3 CURRENT DOMESTIC INDIRECT TAX 8
STRUCTURE
CH.2 RESEARCH METHODOLOGY 9
2.1 OBJECTIVES OF THE STUDY 9
2.2 NEED OF THE STUDY 9
CH.3 CURRENT TAX STRUCTURE 10
3.1 VAT/ SALES TAX 10
3.2 ENTRY TAX 10
3.3 CENTRAL EXCISE TAX 10
3.4 JOB WORK 11
3.5 LIMITATIONS OF PRESENT TAX 11
STRUCTRE
3.6 TEXTILE SPECIFIC ISSUES 14
CH.4 STRUCTURE & DESIGN OF GST 16
4.1 BASIC FEATURES 16
4.2 TAXES TO BE SUBSUMED 17
4.3 COMPONENTS OF GST 19
4.4 BENEFITS OF GST 20
4.5 COMPARATIVE ILLUSTRATION 22
CH.5 IMPLICATION OF GST ON 25
TEXTILE INDUSTRY
5.1 BACKGROUND OF TEXTILE 25
INDUSTRY
5.2 TAXATION IN TEXTILE INDUSTRY 25
5.3 GST RATE AND ITS IMPACT 26
5.4 POSITIVE IMPACT FOR CAPITAL 28
INVESTMENTS
CH.6 SUGGESTIONS 29
CH.7 LIMITATION AND SCOPE 30
CH.8 CONCLUSION 31
BIBLOGRAPHY 32
4
CH.1 INTRODUCTION
Goods and Services Tax (GST) is a proposed system of indirect taxation in India
merging most of the existing taxes into single system of taxation. GST would be a
comprehensive indirect tax on manufacture, sale and consumption of goods and
services throughout India, to replace taxes levied by
the central and state governments. The GST is consumption based tax levied on the
supply of Goods and Services which means it would be levied and collected at each
stage of sale or purchase of goods or services based on the input tax credit method.
This method allows GST-registered businesses to claim tax credit to the value of GST
they paid on purchase of goods or services as part of their normal commercial
activity. Taxable goods and services are not distinguished from one another and are
taxed at a single rate in a supply chain till the goods or services reach the consumer.
Administrative responsibility would generally rest with a single authority to levy tax
on goods and services. Exports would be considered as zero-rated supply and imports
would be levied the same taxes as domestic goods and services adhering to the
destination principle in addition to the Customs Duty which will not be subsumed in
the GST.
The introduction of Goods and Services Tax (GST) would be a significant step in the
reform of indirect taxation in India. Amalgamating several Central and State taxes
into a single tax would mitigate cascading or double taxation, facilitating a common
national market. The simplicity of the tax should lead to easier administration and
enforcement. From the consumer point of view, the biggest advantage would be in
terms of a reduction in the overall tax burden on goods, which is currently estimated
at 25%-30%, free movement of goods from one state to another without stopping at
state borders for hours for payment of state tax or entry tax and reduction in
paperwork to a large extent.(Yash Nagarkoti, 2017)
The textile industry in India traditionally, after agriculture, is the only industry that
has generated huge employment for both skilled and unskilled labour in textiles. The
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textile industry continues to be the second largest employment generating sector in
India. It offers direct employment to over 35 million in the country. The share of
textiles in total exports was 11.04% during April–July 2010, as per the Ministry of
Textiles. During 2009-2010, Indian textiles industry was pegged at US$55 billion,
64% of which services domestic demand.[1] In 2010, there were 2,500 textile weaving
factories and 4,135 textile finishing factories in all of India. According to AT
Kearney’s ‘Retail Apparel Index’, India is ranked as the fourth most promising
market for apparel retailers in 2009.
India is first in global jute production and shares 63% of global textile and garment
market. India is 2nd in global textile manufacturing and also 2nd in silk and cotton
production. 100% FDI is allowed via automatic route in textile sector. Rieter,
Trutzschler, Soktas, Zambiati, Bilsar, Monti, CMT, E-land, Nisshinbo, Marks &
Spencer, Zara, Promod, Benetton, Levi’s are the some of foreign textile companies
invested or working in India.(Wazir, EY, 2015)
Many of the problems can be addressed by extending the scope of taxation ofservices
for the states and the scope of taxation of goods up to the retail stagefor the center.
6
Considerable discussion has already taken place as to a suitabledesign and
administrative framework for GST. While, it has not been possible toresolve all the
differences, significant progress has been made and the maincontours of the GST
appear to be emerging.
Taking account of the latest developments, the present position is that the central
government has come out with a revised draft of the constitution amendment bill
(2013) after receiving the report of the Parliamentary Standing Committee on the
earlier constitution amendment bill (2011). The revised constitution amendment bill is
presently being deliberated upon by theEmpowered Committee (EC) of the State
Finance Ministers. Based on the discussions at the Empowered Committee and the
deliberations of the central government, certain contours of the GST have emerged
clearly while there are some critical aspects on which decisions will have to be taken
by the proposed GST Council.
GST will be a concurrent GST where the central and State governments will share a
common tax base consisting of the value added of goods and services in the reduction
and sale of goods and services.
Petroleum products such as crude, motor spirit (including ATF) and HSD would be
kept outside GST. Sales Tax could continue to be levied by the States on these
products with a floor rate. Similarly, Centre could also continue its levies.
Alternatively, petroleum products may also be included in the scope of GST with the
provision of a non-rebatable excise/sales tax over and above the standard rate of GST.
In this model, the Centre would levy an Integrated Goods and Services Tax (IGST)
which would be CGST plus SGST on all inter-state transactions of taxable goods and
services with appropriate provision for consignment or stock transfer of goods and
services. Present discussions indicate that IGST or an equivalent mechanism will be
developed and the current sales tax on inter-state sales which is levied in the origin
state (central sales tax) will be abolished.(Wazir, EY, 2015)
7
1.3 Current Domestic Indirect Tax Structure
The main central indirect taxes are central excise duties or cenvat and service tax.
Since textiles are goods, the relevance of service tax is only with respect to service
inputs into textile outputs. The main state taxes are sales tax/State VAT, tax on inter-
state sales (also called the central sales tax) and entry tax. These pertain to textiles
outputs as well as non-service textile inputs.
In spite of reforms, the current domestic indirect tax regime suffers from various
inefficiencies. Taxation of inputs and capital goods creates a huge cascading impact
on the industries. High and multiple tax rates coupled with exemptions and
concessions further add to the complexities. Also, taxation of inter-State sales and
lack of harmony in the states sales tax systems, which now prevails in the state VAT
system, encourages harmful inter-state competition and leads tomarket distortions. At
the State VAT level, numerous complexities exist, primarily relating toclassification
of goods in different tax rate schedules. For instance, the basic necessities could be
exempted from tax, taxable at 4-5%, or taxable at the standard rate of 12.5% or
higher. Another source of complexity under the State VAT is determining whether a
particular transaction constitutes a sale of goods or of services.(Mahadev, 2017)
8
CH.2 RESEARCH METHODOLOGY
9
Implementation of GST is the need of the hour. GST will not only result in
uniformization of tax structure in India but will also increase the revenue to thegovt. It
will also reduce the prices of some goods which will reduce the burden on the
‘ultimate consumers’.
10
CH.3 CURRENT TAX STRUCTURE
Most of the States in India have exempted textiles and fabrics from the levy of VAT /
Sales tax. Garments including textiles are being subject to lower rate of VAT / Sales
tax in many States. For example, in Karnataka State, readymade garments and other
articles suffer lower rate of 5.5% tax. Textiles are exempted from VAT. For small
players, the option of paying taxes at concessional rates is also provided under
composition scheme in many States.
In many States, entry tax is levied on specified goods when goods enter local area.
Even textiles such as cotton, woolen or silk or artificial silks are liable to entry tax in
States like Karnataka at the rate of 1% which adds to the purchase cost.
Central excise duty was first introduced on woven garments in year 2001 which was
subsequently extended to the entire textile industry by 2003. The excise duty
exemption option was also provided vide notification no.30/2004 with a condition of
non-availment of Cenvat credit. There was also an option to pay concessional rate of
excise duty with Cenvat credit benefit. However, almost all assesses opted for
exemption. In 2011, mandatory excise duty was reintroduced on branded garments
with Cenvat credit benefit and abatement of 55% for duty payment. This mandatory
levy was again removed in 2013 and optional scheme of paying duty with Cenvat
credit benefit was continued. In 2016, mandatory excise duty has been introduced
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again on branded readymade garments made up of textiles falling under central excise
tariff headings. The levy is attracted only when retail sale rice (RSP) is Rs.1000/- or
more and levy is only on 60% value after standard abatement of 40%. For payment of
duty, a concessional rate of 2% without Cenvat credit or 12.5% with Cenvat credit
option is applicable. Non-branded goods continue with "Nil" levy without Cenvat
credit benefit. Otherwise, the option of paying 6% with Cenvat credit in case of
garments / articles of cotton, not containing any other textile material is available. For
garments of other compositions, "Nil" rate without Cenvat credit or 12.5% with
Cenvat credit is available. The non-cotton inputs for the garments such as thread,
yarn, buttons etc. have been subjected to the normal levy under Central Excise for the
past decade or so.
In garment industry many times, brand name owners outsource the goods
manufactured completely or on job work basis. There are special provisions that the
central excise duty levy which in normal course should be attracted in the hands of the
job worker gets shifted to the brand name owner. Such brand name owner needs to
register and comply with the provisions of excise law. Brand name owner
alternatively could authorize his job-worker to obtain registration and pay duty on
goods. (CA Rishi Goyal, 2017)
Since 2003 a lot of efforts have been made by the concerned authorities to implement
Goods and Service tax in India. A major reason for its implementation is to overcome
the limitations and shortcomings in the existing indirect tax structure. GST is a tax
which is able to overcome almost all the limitations in the existing indirect tax
regime. Under GST there will be continuous flow of credit and no cascading effect.
Some of the limitations of existing tax structure which GST would be able to cover
are as follows:-
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Cascading Effect
Lack of Transparency
Lack of Uniformity
Narrow Base
Lack of transparency
Under excise & service tax law, currently there is no mechanism to cross verify the
claim of CENVAT credit made by the manufacturer/service provider. Even under
State VAT laws, all the States in India do not have the mechanism to cross verify the
credits.
13
the clearance is on account of sale or otherwise. State VAT is levied on sale of goods.
Entry tax is levied on entry of goods in a particular State.
Narrow base
Due to different thresholds under different laws as well as numerous exemptions and
concessions, the current tax base under indirect tax is narrow as compared to other
countries.
Multiple administrations
Under the current system, businessmen are required to visit different tax offices
according to the applicable laws to his business. These increases the compliance cost
of businesses and breeds unnecessary complexity.
14
and vice versa. In instances where regular taxpayers purchase goods from
composition taxpayers, they are ineligible for any input tax credit, thereby breaking
the credit chain. Any input taxes paid on previous transactions in the supply chain is
included in the cost of the product, seriously affecting the competitiveness of textile
exports by merchant exporters.
Exempt sectors
Fuel (Petroleum products, Gas, Electricity etc.) comprises 35-40% of the cost for
synthetic textiles. Given that current GST discussions do not indicate inclusion of
Petroleum products and electricity under GST, the competitiveness of the synthetic
textile industry with respect to other textile sectors in India and globally will be
affected adversely.To overcome this bottleneck it is recommended that all demerit
goods, including fuel inputs such as Diesel, Coal etc. should be subject to a non-
rebatable supplementary duty plus the GST.(Wazir, EY, 2015)
15
CH.4 STRUCTURE AND DESIGN OF GST
1. The GST will have two components: one levied by the Centre (CGST) and the
other levied by the States (SGST). The basic features of law such as chargeability,
definition of taxable event and taxable person, measure of levy including valuation
provisions, basis of classification etc. should be uniform across these statutes as
far as practicable.
2. The CGST and SGST would be applicable to all supply of goods and services made
for a consideration except for the exempted goods and services, goods which are
outside the purview of GST and the transactions which are below the prescribed
threshold limits.
3. The CGST and SGST are to be paid to the accounts of the Centre and the States
separately. Taxes paid against the CGST and SGST will get input tax credit (ITC)
within the CGST and SGST chains respectively but cross utilization of ITC between
CGST and SGST would not be allowed.
4. The administration of the CGST will be with the center and that of SGST with the
States.
5. The following Central Taxes are to be subsumed under the GST: (i) Central Excise
Duty, (ii) Additional Excise Duties, (iii) Excise Duty levied under the Medicinal and
Toiletries Preparation Act, (iv) Service Tax, (v) Additional Customs Duty, commonly
known as Countervailing Duty (CVD), (vi) Special Additional Duty of Customs
(SAD), (vii) Surcharges, and (viii) Cesses.
16
6. The following State taxes and levies are to be subsumed under GST: (i) VAT /
sales tax, (ii) entertainment tax (unless it is levied by the local bodies, (iii) luxury tax,
(iv) taxes on lottery, betting and gambling, (v) State cesses and surcharges in so far as
they relate to supply of goods and services, and (vi) entry tax not in lieu of Octroi.
The treatment of alcoholic beverages and tobacco under the GST is still not clear. As
far as petroleum products are concerned, i.e. crude, motor spirit (including ATF) and
HSD are to be kept outside GST. Sales Tax could continue to be levied by the States
on these products with prevailing floor rate. Similarly, Centre could also continue its
levies.
GST purposes to bring uniform indirect tax regime in the country by subsuming
central and state indirect taxes into single indirect tax.
The following central taxes which are currently levied and collected will be
subsumed under the GST regime:-
7) Service Tax.
8) Cess and surcharges insofar as far as they relate to supply of goods or services.
17
The following state taxes which are currently levied and collected will be
subsumed under the GST regime:-
1) State VAT
3) Purchase Tax
4) Luxury Tax
5) Entry Tax (Entry tax will be subsumed however entry tax levied by municipal
bodies on goods entering into local area will not be subsumed)
7) Taxes on advertisements
9) State cess and surcharges insofar as far as they relate to supply of goods or
services.
There are few other indirect taxes that will not be subsumed under the GST
regime:
1) Stamp Duty
2) Vehicle Tax
3) Electricity Duty
4) Custom Duty
There are few products that will be outside of the GST regime:
1) Petroleum products
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4.3 Components of GST
GST
Intra-State Inter-State
Movement Movement
COMPONENTS OF GST
For eg: - A dealer in Maharashtra sold goods to the consumer worth Rs. 10,000. The
GST rate is 18% comprising of CGST rate of 9% and SGST rate of 9%, in such case
the dealer collects Rs. 1800 and Rs. 900 will go to the central government and Rs. 900
will go to the Maharashtra government.
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What is IGST?
GST is a consumption based tax i.e. the tax should be received by the state in which
the goods or service are consumed not by the state in which such goods are
manufactured.
IGST is designed to ensure seamless flow of input tax credit from one state to another.
It is designed so that a state doesn’t have to deal with every other state to settle the tax
amounts and a state has to deal with only center government.
Therefore if inter state sales (i.e from one state to another state) is made then seller
will charge IGST in place of CGST + SGST.
For eg:- A dealer in Maharashtra sold goods to its dealer in Rajasthan worth Rs. 1,
00,000. The GST rate is 18% comprising of CGST rate of 9% and SGST rate of 9%,
in such case the dealer has to charge Rs. 18,000 as IGST.(Cleartax)
4.3Benefits of GST
Ease of business
GST will bring one country one tax concept. This will prevent unhealthy competition
among states. It will be beneficial to do interstate business.
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Easy Tax Filing and Documentation
For a businessman, GST will be a boon. No multiple taxes means compliance and
documentation will be easy. Return filing, tax payment, and refund process will easy
and hassle free.
More Employment
As GST will reduce cost of product it is expected that demand of product will
increase and to meet the demand, supply has to go up. The requirement of more
supply will be addressed by only increasing employment.
Increase in GDP
As demand will grow naturally production will grow and hence it will increase gross
domestic product. It is estimated that GDP will grow by 1-2% due to GST.
Increase in Revenue
GST will replace all 17 indirect taxes with single tax. Increase in product demand will
ultimately increase tax revenue for state and central government. Goods and service
tax is a boon for the Indian economy and the common man. It is a welcome step taken
by the government.
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4.5 Comparative Illustration between Existing Tax system and GST
Illustration Showing How GST will be beneficial for Wholesalers, Manufactures, Retailers
and Consumers
22
SOURCE: caclubindia.com
23
Note 1 – Input Tax Credit is available in the hand of Wholesaler is Rs. 14,784 and Rs.
26,400 in case of existing Tax System and GST respectively.
Note 2– Input Tax Credit is available in the hand of Retailer is Rs. 16,262 and Rs.
29,040 in case of existing Tax System and GST respectively.
With the Help of this illustration, it is clear that GST is beneficial for all i.e.
Wholesaler, Retailer & Consumer.
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CH.5 IMPLICATION OF GST ON TEXTILE INDUSTRY
The textiles and apparel industry in India accounts for about 10% of manufacture or
production and 2% of India's Gross Domestic Product (GDP) and constitutes about
13% of country's export earnings. The industry is currently estimated at around $108
billion and is expected to reach $223 billion by 2021. Textile industry has been
enjoying various tax exemptions, benefits and concessions under indirect taxes.
Introduction of GST could have a considerable impact on textile industry.
The lack of fetters on this industry had enabled it to grow even though much of the
manufacture or production takes place in the unorganized segment. The export of $40
Billion is encouraging. As per Press Reports the Commerce Ministry has asked for
concessions/sops in GST regime also for exporters. (Wikipedia)
Taxation of textile sector is opaque and non-neutral across its various segments. Many
textile outputs are either exempt under the central and state tax regimes or are
subjected to relatively low tax rates. Most of the indirect taxes fall on inputs, both
goods and services, and therefore remain hidden, if un-rebated. On the whole, the
textile sector is lightly taxed and extensively subsidized. Textile exports are supported
through payments of un-rebated taxes on textile inputs and other subsidies. Textile
units have historically enjoyed exemptions given to small industries.
The textile industry consists of a large number of small enterprises and a small
number of large enterprises where the organized and unorganized sectors integrally
coexist. The share of the decentralized sector has been increasing in recent years as
compared to the mill sector.
Taxation of the textile sector will be significantly recast with the implementation of
the Goods and Services tax (GST). The GST is expected to replace a number of
existing central and state taxes. The important taxes that may be subsumed in GST
are:
25
Central taxes: Central excise duty, Service tax, Additional Customs duty,
Special Additional Duty, surcharges and cesses
State taxes: Sales tax/VAT, Central Sales Tax, Purchase tax, Entry tax, and
state cesses and surcharges.
The final design of the GST and the related constitutional amendments are yet to be
finalized. The impact of GST on the textile sector will be quite significant but will
differ according to the design of the GST and the GST rates.(Wazir, EY, 2015)
The impact of GST on Textile industry could be identified only after the final rates
ofGST are announced. However GST will significantly impact this sector as this
sector is further divided into unorganized and organized sector, since the unorganized
sector were not paying any taxes till now, after the implementation of GST they will
also come under its purview.However GST is the right, timely remedy, for the textile
chain which is a complicated one and has invited a number of disputes in relation to
the current taxation. Thorny issues including the fabrics versus garment classification,
differential taxation for cotton and manmade fiber, and higher tax for composite mills
than the power looms are plaguing the industry. The GST will be a uniform rate of tax
for such disputed items and likely to amicably settle the disputes.
The actual impact of GST will come into light only after the final rates are fixed,
however even at the 12% lower rate recommended by the Dr. Arvind Subramanian
Committee, the textile sector is likely to be negatively impacted. The cotton value
chain is likely to be the worst affected as it is currently attracting zero central excise
duty.
Currently, the State VAT is ~4~5% on apparels and with ~1.2% effective central
excise duty on branded garments with MRP of more than Rs 1000, the overall tax
incidence on the finished goods, i.e. apparels is much lower than 12%, which is the
lowest rate being proposed in GST .
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At 12% rate, the apparel retailers will not have sufficient input credits (such as service
tax on rent of showrooms) tooffset the increased tax liability if the GST is not levied
on upstream sectors like yarn and fabrics and will be negative for retailers.
Fabric manufacturing in India is largely carried out through the SSI sector, where
many of the companies operate under the composite scheme of taxation (applicable
with turnover of up to Rs 1.5 crore). ITC cannot be claimed on purchases from
suppliers under composite scheme. With GST on yarn, the apparel manufactures
would prefer to deal with GST-compliant fabric suppliers to avail ITC. (Table)
Accordingly, ICRA also expects that due to reduced tax advantage of cotton yarn vis
a vis man-made yarn, there can be a gradual shift in the domestic textile industry
towards manmade fiber. It may be noted that India currently operates with a fiber mix
of cotton: manmade of 60:40; as against global average of cotton: manmade of 40:60.
However, the above impact will be dependent on the final rates which will be
applicable to the sector.(ICRA, 2016)
Incentive to deal with GST-compliant suppliers: Table depicts how GST non-
compliant suppliers will become uncompetitive vis a vis GST-compliant suppliers as
the purchaser won’t be able to take input credit.
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5.4 Impact: Positive for Capital Investments.
Current Scenario:
Generally, the indirect taxes paid on the capital goods (excise duty and sales tax for
domestic purchase; custom duty, CVD and SAD on import) can be set off against the
indirect taxes payable on the sales. However cotton based textile manufacturers,
which operate under optional duty route in domestic market, the set-off against these
indirect taxes, is not possible and accordingly it increases the cost of capital
investments.
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CH.6 SUGGESTIONS
The suggestions which are being drawn out from the study are as follows:
Tax payer education or public awareness campaign need to be provisioned by
Central Government. Public Workshops, training and various seminars on
GST must be conducted in all states by their respective State Governments.
Since Textile Industry has been charged with lower tax rates, therefore the
government should once again consider the GST rates because a proposed
12% rate will make goods a little expensive for the consumers.
The government should organized proper training programs and educational
events so as to inform producers about the benefits of GST since a major
fraction of Textile Industry come under unorganized sector.
Government should construct a proper monitoring system for monitoring the
dummy registrations and refunds problems.
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CH.7 LIMITATIONS OF THE STUDY AND SCOPE FOR FURTHER
RESEARCH
Although the research has reached its aims but however there were some unavoidable
limitations which are as follows:
The study is based upon secondary data only no primary data was collected
The study only provides an overview of GST and its implications on textile
industry only.
The study does not provide information on actual impact of GST on textile
industry, actual impact can only be analyzed once GST is implemented.
However the study provides an overall view about the structure of GST. It also
provides what can be the expected impact of GST on Indian Textile Sector. Through
this study one can get a basic idea about Goods and Service Tax what are its
components and its benefits and how its implementation can improve the existing tax
structure results in the overall growth of Indian Economy.
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CH.8 CONCLUSION
Due to dissilient environment of Indian economy, it is demand of time to implement
GST. Consumption and productions of goods and services is undoubtedly increasing
and because of multiplicity of taxes in current tax regime administration complexities
and compliance cost is also accelerating. Thus, a simplify, user -friendly and
transparent tax system is required which can be fulfilled by implementation of GST.
Its implementation stands for a coherent tax system which will colligate most of
current indirect taxes andin long term it will lead to higher output, more employment
opportunities and flourish GDP by 1-1.5%. It can also be used as an effective tool for
fiscal policy management if implemented successfully due to nation-wide same tax
rate. Its execution will also results in lower cost of doing business that will make the
domestic products more competitive in local and international market. No doubt that
GST will give India a world class tax system by grabbing different treatment to
manufacturing and service sector. But all this will be subject to its rational design and
timely implementation.
31
Bibliography
Moneycontrol. (2015). Retrieved from www.moneycontrol.com:
http://www.moneycontrol.com/news/business/companies/hello-gst-how-
would-it-impact-textile-industry-1056486.html
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