OBJECTIVES 1. To find out the problems after implementation of good and service tax in textile industry. 2. To find out the future prospects of GST in textile industry.

1. PROBLEMS AND PROSPECTS OF
GOODS AND SERVICES TAX
IN TEXTILE INDUSTRY
Authors:
Babita Saraswat
Vaishnavi Kohli

2. OVERVIEW
INTRODUCTION
OBJECTIVES
Need of the study
Literature review
Research methodology
Findings
Conclusion
Suggestions
References
Problems
Prospects

3. INTRODUCTION
Textile industry is the oldest industrial sector, has great impact on Indian
economy. Even today, Textile industry contributes about 6% to GDP, 16 %
in exports, 18 % to employment in industrial sector with over 45 million
employment opportunities in India and 9 % to excise collections1. Till date
textile industry was lightly taxed and highly subsidized. Indian textile
industry ranks 2nd in the production of both cotton yarn and fabric and 5th
in the production of synthetic fibers and yarns. Cotton, that was exempted
before now is under tax regimes but Handlooms are exempted from GST.
Textile industry aims much higher to attract FDI as that complex tax structure
is no more now and GST has reduced lot of paper works and other
complexity faced by foreign investors to invest in India as government has
allowed 100% FDI in Indian textile sector under the automatic route.
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1. International journal of scientific and engineering research , volume
7, issue 12 , December--2016

4. OBJECTIVES
To find out the problems of implementation of GST in textile industry of
Agra.
To study the prospects of GST implementation in Textile Industry of Agra.
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5. NEED OF THE STUDY
India’s textile & garment industry is valued at USD 105 bn (2015) and
growing at 9% CAGR. The industry is projected to double in value till
2025 with domestic demand being the engine of growth. Decline in India’s
export performance has been a matter of concern as exports of textiles &
apparel dropped to US$37 bn, for a third straight year in 2016.
The occurrence of growth going off the track and against the ambitious plans
of Government about the growth and future prospects of textile industry,
thus it is very essential to find out the perspectives of the textile clusters on
the problems and challenges of GST implementation.
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6. LITERATURE REVIEW
M. Govinda Rao, (2009) stated that the textile traders are mostly uneducated and unaware
of various accounting and taxation concepts.
Mahender, (2017) studied “GST effect on manufacturing industry- India” and concluded
that textile and garment industry may be negatively impacted with the implementation of
GST.
Lourdunadhan and Xavier,(2017) studied “A study on implementation of GST in India:
Prospectus and challenges” and concluded that GST will bring One Nation and One Tax
market. Efficient formulation of GST will lead to resource and revenue gain for both
Centre and States majorly through widening of tax base and improvement in tax
compliance. She suggested in her research paper that it is necessary on the part of the
government to educate, conduct proper training, continuous seminars and workshop on
GST is need of the hour. Thus, necessary steps should be taken.
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7. RESEARCH METHODOLOGY
Sampling Technique: SNOW Ball sampling Technique
Sample Area: Agra City
Sample Size: 19
Sources of Data Collection:
Primary Data:
 Questionnaire
 Direct Personal Interview
Secondary Data:
 Published Material of Company (India Brand Equity Foundation )
 Research Papers
 Journals
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8. FINDINGS
1. Input Tax credit: Clear, but will take time to get smooth functioning with
unorganized sector.
2. Reduced manufacturing cost : can be enjoyed only in long run.
3. Problems in filing returns due to credit availability.
4. Lack of IT knowledge is leading to the complexity in the whole process of
GST.
5. Reduction in exemption limit.
6. Multiple returns: not expected but would increase the load of work.
7. Composition Scheme is not available for job workers.
8. Hiring of skilled Personnel would increase in cost.
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PROBLEMS

9. FINDINGS
1. Reduction in prices.
2. GST will create a single market window for movement of goods and services.
3. Potential to raise India’s GDP.
4. Eliminating tax evasions.
5. GST implementation bringing employment opportunities.
6. Under technology based GST, there will be more transparency in the system
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PROSPECTS

10. CONCLUSION
As per the study, though, the manufacturing sector stands to benefit
significantly with the introduction of GST and it is being sensed by the
dealer distributor cluster of Agra, still there are many issues like
administrating the whole process is being complicated for the textile
industry.
Success of GST is completely dependent on contribution of IT sector and
how much the industrialists are aware about its process and functioning.
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11. SUGGESTIONS
1. Government need to focus more on providing IT knowledge so that
businessmen would be aware of the whole process of GST filing.
2. In unorganised sectors of textile industry Input Tax Credit should be
included.
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12. REFERENCES
1. Kumar, Nitin. Goods and Services Tax in India: A Way Forward. Global Journal of
Multidisciplinary Studies. 2014; 3(6):216-225.
2. Khurana, Akanksha, Sharma Aastha. Goods and Services Tax in India - A Positive
Reform for Indirect Tax System: International Journal of Advanced Research.
2016; 4(3):500-505.
3. Sehrawat, Monika Dhanda, Upasana. Gst In India: A Key Tax Reform:
International Journal of Research Granthaalayah. 2015; 3(12):133-141.
4. Dani, Shefali. A Research Paper on an Impact of Goods and Service Tax (GST)
on Indian Economy: Business and Economics Journal. 2016; 7(4):1-2.
5. Gupta, Nishita. Goods and Services Tax: Its implementation on Indian economy:
International Research Journal of Commerce, Arts and Science. 2014; 5(3):126-
133.
6. . Biyani, R. Textile & apparel industry looks keenly at GST rates. E T Retail
(2017).
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13. THANKYOU