The document discusses the impact of GST on the textile industry in India. It provides background on the textile industry, explaining that it contributes 4% to India's GDP and employs over 45 million people. It then explains what GST is and how it replaces previous indirect taxes. The impact of GST on the textile industry is both positive and negative. Positively, it reduces manufacturing costs and allows input credit on capital goods. However, it also causes transition issues, increases administrative costs, and some small vendors were unprepared for the changes. Overall, GST will have a substantial impact on the textile industry.

1. IMPACT OF GST ON
TEXTILE INDUSTRY
Presented by:- DIVISION – B
Suchita Singh BATCH-2017-19
Sonali Singh
Sonali Marathe
Suraj Pawar
Sunny Gupta
Sunny Vijay Gupta

2. Index
1.TEXTILE INDUSTRY.
2.GOODS AND SERVICES TAX.
3.IMPACT OF GST ON TEXTILE INDUSTRY.
4.CONCLUSION.

3. Textile Industry
 Production of yarn and cloth.
 4% contribution to Indian GDP.
 Current estimation of Indian textile
Industry is $120 billion.
 Provide employment to over 45 million
people.

4. Textile Industry
Two broad
segments
Unorganized
sector
Handlooms,
Handicraft,
Sericulture
Organized
sector
Spinning, apparel
and garments.

5. Government Initiatives
 100% FDI is allowed in Indian Textile
sector.
 Signed MoU with 20 e-commerce
companies.

6. GOODS AND SERVICES TAX
 An indirect tax introduced on 1st July
2017 in India.
 Tax charged on supply of Goods and
Services or both for consideration.
 Destination based consumption tax.
 Replacement for multi stage tax.
 Levied on the value of the product or
service supplied and not sold.

7. CONSTITUENTS OF GST
GST
INTRA-
STATE
CGST SGST
INTER-
STATE
IGST

8. Tax Structure
Previous Taxing
Practice
 Excise Duty
 Sales Tax/ VAT
 Service Tax
GST
 Taxable event is
supply of goods
and services.
 Interstate- IGST
 Intrastate –
1.CGST
2.SGST

9. GST on Textile Industry

10. Impact of GST on Textile Industry
POSITIVE IMPACT
 Reduction in manufacturing cost.
 Input credit allowed on capital goods.
 No fiscal barriers in Interstate sale.
 Beneficial to customers.

11. NEGATIVE IMPACT
 Transition issues.
 Management of changes.
 Higher administrative cost.
 Small vendors were unprepared.

12. Conclusion
 The impact of GST on Textile
industry would be substantial
involving lot of transitional issues
and industry needs to gear-up for
implementation of GST.
 Indian textile industry is expected
to reach $230 billion by 2020.

13. Thank-you