Textile Sector’s struggle with GST; is there a solution in sight?
Dr. Shalini R Tiwari (Faculty, IMT Ghaziabad) and Mr. Sanchit Gupta (Student, IMT Ghaziabad, Executive MBA 2018-19)
Published: SME WORLD | Date : November, 2019
Othe Northern India Textile Mills Association (NITMA) spoke to the government of India through several newspapers complaining of the ailing textile sector. They pointed out several reasons which were responsible for this condition viz. high tax rates, high- interest rates, high cost of raw material, and low cost of imports. All the four issues can result in the demise of any sector however robust it may be, let alone textile sector in India. Though the government can provide interventions at several levels, but simplifying tax rates is seemingly the easiest one to do. This article highlights the fact that despite adoption of a simplified tax structure, textile structure has not benefitted and what can be done to rectify the situation.