COMPARATIVE STUDY OF GST IN TEXTILE INDUSTRY

GST IN TEXTILE INDUSTRY

CH-1 INTRODUCTION

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Synopsis
1.1 Meaning
1.2 History of GST.
1.3 Evolution of GST.
1.4 Tax Structure before GST.
1.5 When did GST start?
1.6 Decision taken by GST council.
1.7 Goods and Service Tax Network.
1.8 Key features of GST regime.
1.9 Features of GST.
1.10 Benefits.
1.11 Drawbacks.
1.12 Criticism

1.13 GST Rates.

1.14 Payment Procedure under GST.
1.15 Why is GST needed in India?
1.16 Textile Industry.
1.17 Impact of GST on Textile Industry.

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1.1 MEANING OF GST

The Goods and Services Tax (GST) is a value-added tax levied on most goods and services
sold for domestic consumption. The GST is paid by consumers, but it is imposed by the
Government on businesses by selling the goods and services. In effect, GST provides revenue
for the government. Goods and Services Tax (GST) is an indirect tax imposed in India on the
supply of goods and services. GST is imposed at every step in the production process, but is
meant to be refunded to all parties in the various stages of production other than the final
consumer. Goods and services are divided into five tax slabs for collection of tax - 0%, 5%,
12%, 18% and 28%. 32%

However, Petroleum products, alcoholic drinks, electricity, are not taxed under GST and
instead are taxed separately by the individual state governments, as per the previous tax regime.
There is a special rate of 0.25% on rough precious and semi-precious stones and 3% on gold.
In addition, a cess of 22% or other rates on top of 28% GST applies on few items like aerated
drinks, luxury cars and tobacco products.

Pre-GST, the statutory tax rate for most goods was about 26.5%, Post - GST, most goods are
expected to be in the 18% tax range. The goods and service tax (GST) is an indirect federal
sales tax that is applied to the cost of certain goods and services. The business adds the GST to
the price of the product and a customer who buys the product pays the sales price plus GST.
The GST portion is collected by the business or seller and forwarded to the government. It is
also referred to as Value-Added Tax (VAT) in some countries. GST has been introduced to
replace multiple indirect taxes levied by State and Central Governments in order to simplify
the indirect tax system.

GST has replaced almost 17 of the existing state and central indirect taxes (more to come in the
future) such as central excise duty, additional customs duty, VAT, entertainment tax , service
tax etc. It is called as Goods and Services Tax because it is applicable on the supply of both
Goods and Services

Most countries with a GST have a single unified GST system, which means that a single tax
rate is applied throughout the country. A country with a unified GST platform merges central

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taxes (e.g., sales tax, excise duty tax, and service tax) with state-level taxes (e.g., entertainment
tax, entry tax, transfer tax, sin tax, and luxury tax) and collects them as one single tax. These
countries tax virtually everything at a single rate.

The tax rates, rules and regulations are governed by the GST Council which consists of the
finance ministers of centre and all the states. GST is meant to replace a slew of indirect taxes
with a federated tax and is therefore expected to reshape the country's 2.4 trillion-dollar
economy, but not without criticism. Trucks' travel time in interstate movement dropped by
20%, because of no interstate check posts.

GST has simplified the tax compliance process for businesses, as they only need to file one
unified tax return instead of multiple tax returns under the earlier tax regime. GST has also led
to the formalization of the informal sector, as businesses need to register under GST to claim
input tax credit and participate in the formal economy. The GST Council meets regularly to
review the tax rates and make any necessary changes. The Council has made several revisions
to the tax rates since the introduction of GST to address concerns raised by various stakeholders

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GST has facedcriticism from some quarters, particularly small businesses and traders who have
faced challenges in adapting to the new tax regime. However, the government has taken several
measures to address their concerns and streamline the GST process.

GST has brought about greater transparency in the tax system, as all transactions are recorded
in a centralized system, making it easier for tax authorities to track and verify tax payments.
GST has also facilitated ease of doing business in India by reducing the compliance burden on
businesses and eliminating the cascading effect of taxes (tax on tax).

GST has led to a shift towards digitization and automation, as businesses need to file their
returns online and maintain digital records. The GST regime has several anti-profiteering
provisions to prevent businesses from increasing their prices in response to the reduction in tax
rates, which ensures that the benefits of GST are passed on to the end consumer.

GST has had a positive impact on the revenue collections of the government, as it has led to
increased tax compliance and a broader tax base. The GST system is continuously evolving,
with the government introducing several reforms and amendments to address the challenges
and concerns raised by various stakeholders. GST has led to the simplification of the supply
chain process, as businesses now have to deal with only one tax instead of multiple taxes,
making it easier to transport goods across state borders.

GST has also led to the standardization of tax rates across the country, which has reduced the
tax arbitrage opportunities for businesses operating in different states. GST has incentivized
businesses to adopt a more efficient supply chain model, as they can claim input tax credit on
their purchases, thereby reducing their tax liability. GST has also led to the emergence of new
business models, such as e-commerce, which have benefited from the simplified tax regime
and reduced compliance burden.

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1.2 HISTORY OF GST IN INDIA

• 2004: In India, the idea of adopting GST was first suggested by the Atal Bihari Vajpayee
Government in the year 2000. The state finance ministers formed an Empowered
Committee (EC) to create a structure for GST, based on their experience in designing
State VAT. Representatives from the Centre and states were requested to examine
various aspects of the GST proposal and create reports on the thresholds, exemptions,
taxation of interstate supplies, and taxation of services. The committee was headed by
Mr. Asim Dasgupta, the finance minister of West Bengal. Mr. Dasgupta chaired the
committee till 2011.

• 2004: A task force that was headed by Mr. Vijay L. Kelkar, the advisor to the finance
ministry, indicated that the existing tax structure had many issues that would be
mitigated by the GST system.

• February 2005: The finance minister, Mr. P. Chidambaram, said that the medium-tolong
term goal of the government was to implement a uniform GST structure across the
country, covering the whole production distribution chain. This was discussed in the
budget session for the financial year 2005-06.

• February 2006: The finance minister set 1 April 2010 as the GST introduction date

• November 2006: Mr. Parthasarthy Shome, the advisor to the finance minister,
mentioned that states will have to prepare and make reforms for the upcoming GST
regime

• February 2007: The 1st April 2010 deadline for GST implementation was retained in
the union budget for 2007-08.

• February 2008: At the union budget session for 2008-09, the finance minister confirmed
that considerable progress was being made in the preparation of the roadmap for GST.
The targeted timeline for the implementation was confirmed to be 1 April 2010.

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• July 2009: Mr. Pranab Mukherjee, the new finance minister of India, announced the
basic skeleton of the GST system. The 1 April 2010 deadline was being followed then
as well.

• November 2009: The EC that was headed by Mr. Asim Dasgupta put forth the First
Discussion Paper (FDP), describing the proposed GST regime. The paper was expected
to start a debate that would generate further inputs from stakeholders.

• February 2010: The government introduced the mission-mode project that laid the
foundation for GST. This project, with a budgetary outlay of Rs.1,133 crores,
computerised commercial taxes in states. Following this, the implementation of GST
was pushed by one year.

• March 2011: The government led by the Congress party puts forth the Constitution
(115th Amendment) Bill for the introduction of GST. Following protest by the
opposition party, the Bill was sent to a standing committee for a detailed examination.

• June 2012: The standing committee starts discussion on the Bill. Opposition parties
raise concerns over the 279B clause that offers additional powers to the Centre over the
GST dispute authority.

• November 2012: Mr. P. Chidambaram and the finance ministers of states hold meetings
and set the deadline for resolution of issues as 31st December 2012.

• February 2013: The finance minister, during the budget session, announces that the
government will provide Rs.9,000 crores as compensation to states. He also appeals to
the state finance ministers to work in association with the government for the
implementation of the indirect tax reform.

• August 2013: The report created by the standing committee is submitted to the
parliament. The panel approves the regulation with few amendments to the provisions
for the tax structure and the mechanism of resolution.

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• October 2013: The state of Gujarat opposes the Bill, as it would have to bear a loss of
Rs.14,000 crores per annum, owing to the destination-based taxation rule.

• May 2014: The Constitution Amendment Bill lapses. This is the same year that Mr.
Narendra Modi was voted into power at the Centre.

• December 2014: India’s new finance minister, Mr. Arun Jaitley, submits the
Constitution (122nd Amendment) Bill, 2014 in the parliament. The opposition
demanded that the Bill be sent for discussion to the standing committee.

• February 2015: Mr. Jaitley, in his budget speech, indicated that the government is
looking to implement the GST system by 1st April 2016.

• May 2015: The Lok Sabha passes the Constitution Amendment Bill. Mr. Jaitley also
announced that petroleum would be kept out of the ambit of GST for the time being.

• August 2015: The Bill is not passed in the Rajya Sabha. Mr. Jaitley mentions that the
disruption had no specific cause.

• March 2016: Mr. Jaitley says that he is in agreement with the Congress’s demand for
the GST rate not to be set above 18%. But he is not inclined to fix the rate at18%. In
the future if the Government, in an unforeseen emergency, is required to raise the tax
rate, it would have to take the permission of the parliament. So, a fixed rate of tax is
ruled out.

• June 2016: The Ministry of Finance releases the draft model law on GST to the public,
expecting suggestions and views.

• August 2016: The Congress-led opposition finally agrees to the Government’s proposal
on the four broad amendments to the Bill. The Bill was passed in the Rajya Sabha.

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• September 2016: The Honourable President of India gives his consent for the
Constitution Amendment Bill to become an Act.

● 2017: Four Bills related to GST become Act, following approval in the parliament
and the President’s assent: Central GST Bill (CGST)
Integrated GST Bill (IGST)
Union Territory GST Bill (UTGST)
Compensation cess

1.3 Evolution of GST:

The Implementation of the Goods and Services Tax (GST) in India was a historical move, as it
marked a significant indirect tax reform in the country. The amalgamation of a large number of
taxes (levied at a central and state level) into a single tax is expected to have big advantages.
One of the most important benefits of the move is the mitigation of double taxation or the
elimination of the cascading effect of taxation.

The initiative is now paving the way for a common national market. Indian goods are also
expected to be more competitive in international and domestic markets post GST
implementation. Goods and Services Tax (GST) is a value-added tax system that was first
introduced in France in 1954. It was later adopted by several other countries around the world,
including Canada, Australia, and New Zealand.

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In India, GST was introduced on July 1, 2017, replacing a complex system of indirect taxes
that varied from state to state. The evolution of GST in India can be traced back to the
recommendations of several committees and task forces set up over the years to study the
feasibility of a uniform indirect tax system in the country.

The first such committee was set up in 1999, which recommended the introduction of a Goods
and Services Tax (GST) as a comprehensive indirect tax on all goods and services. Over the
years, there were several discussions and debates on the design and structure of GST in India.
The GST Council was constituted in September 2016, which played a key role in finalizing the
details of the GST regime.

The final design of GST in India is a dual GST system, which means that both the central
government and state governments have the power to levy GST on transactions within their
respective jurisdictions. GST is levied at multiple rates, ranging from 0% to 28%, with the aim
of minimizing the impact on low-income households and reducing the burden on businesses.

Since its introduction in India, GST has undergone several changes and modifications in
response to feedback from businesses and other stakeholders. Some of the notable changes
include the reduction in GST rates for various items, simplification of GST procedures, and the
introduction of new returns filing system.

Overall, the evolution of GST in India has been a gradual and iterative process aimed at
achieving a simpler, more transparent, and uniform indirect tax system for the country. From
the viewpoint of a consumer, there would be a marked reduction in the overall tax burden that
is currently in the range of 25% to 30%. The GST, due to its self-policing and transparent
nature, is also easier to administer on an overall scale.

Several countries have already established the Goods and Services Tax. In Australia, the system
was introduced in 2000 to replace the Federal Wholesale Tax. GST was implemented in New
Zealand in 1986. A hidden Manufacturer’s Sales Tax was replaced by GST in Canada, in the
year 1991. In Singapore, GST was implemented in 1994. GST is a value-added tax in Malaysia
that came into effect in 2015.

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The implementation of GST in India was a significant step towards a unified tax regime, with
the goal of reducing the complexity of the previous indirect tax system and promoting ease of
doing business in the country. The implementation of GST involved several challenges,
including the need to bring together a large number of state and central taxes under one
umbrella, and the requirement for businesses to comply with the new tax regime.

One of the key benefits of GST is the elimination of cascading taxes, which occurs when taxes
are levied on top of each other. With GST, businesses can claim input tax credits on the tax paid
on their purchases, which helps to reduce the overall tax burden.

GST also promotes transparency in the tax system, as it is based on the principle of
selfassessment and self-declaration. Since the implementation of GST, there have been several
modifications to the tax structure, including the introduction of new tax rates and exemptions.

The GST Council regularly meets to review the tax structure and make recommendations for
changes to ensure the smooth implementation of the tax regime.

Overall, the evolution of GST in India has been a gradual process, with the focus on improving
the tax system and addressing the concerns of businesses and other stakeholders. While there
have been some challenges along the way, the implementation of GST has been an important
step towards a more unified, transparent, and efficient indirect tax system in India.

1.4 Tax Structure before GST:

Before the implementation of GST, taxation laws between the Centre and states were clearly
demarcated. There were no overlaps between the fiscal powers, whatsoever. The Centre would
levy tax on goods manufacture, except alcohol for consumption, narcotics, opium, etc. The
states had the power to charge tax on the sale of goods.

The Centre would levy the Central Sales Tax that was collected by the originating states. The
Centre was also levying service tax on all types of services. Additionally, the Centre was
charging and collecting additional duties of customs on goods that were imported into or

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exported from India. This tax was levied in addition to the Basic Customs Duty. This additional
duty of customs is referred to as Countervailing Duty (CVD) and Special Additional Duty
(SAD) and it counter balances excise duties, state VAT, sales tax, and other such taxes.

The introduction of the GST regime made amendments to the Constitution so that the Centre
and states are empowered at the same time to levy and collect GST. This concurrent jurisdiction
of the states and Centre also requires an institutional mechanism that ensures joint decisions
are taken about the structure and operation of GST.

1.5 When Did GST Start?

Several countries have already established the Goods and Services Tax.
In Australia, the system was introduced in 2000 to replace the Federal Wholesale
GST was implemented in New Zealand in 1986.
A hidden Manufacturer’s Sales Tax was replaced by GST in Canada, in the year 1991.
In Singapore, GST was implemented in 1994. GST is a value-added tax in Malaysia that came
into effect in 2015.
Constitution (One Hundred and First) Amendment Act, 2016 In order to address prevalent
issues in taxation, the Constitution 122nd Amendment Bill was put forth in the 16th Lok Sabha
on 19 Dec 2014.

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The Bill suggests levy of GST on all goods and services, except alcohol that humans consume.
The tax is levied as Dual GST by the Centre and states/union territories. The component levied
by the Centre is Central Tax - CGST, while that levied by the state is State Tax - SGST.
The tax levied by union territories is Union Territory Tax - UTGST.
The Centre would levy the GST on inter-state trade or imports of services and goods. This tax
is referred to as Integrated Tax - IGST.
The tax on five petroleum products, i.e., high speed diesel, crude, petrol, natural gas, and
Aviation Turbine Fuel (ATF) will be outlined later after a decision is made by the GST Council
September 2016: A Goods and Services Tax Council (GSTC) was created by the union finance
minister, revenue minister, and ministers of state to take decisions on GST rates, thresholds,
taxes to be subsumed, exemptions, and other features of the taxation system. The state finance
ministers mentioned that the EC would be a platform for states where there would be
discussions of their regional issues. The GST Council is a separate entity that would oversee
the implementation of the GST system.

1.6 Decision taken by GST Council:

Some of the major decisions taken by the GSTC so far are: There would be four tax rates under
the GST regime, i.e., 5%, 12%, 18%, and 28%.
Some goods and services were also classified as exempt from tax.
A cess above the peak rate of 28% would be levied on certain sin and luxury goods.
The administrative control over 90% of taxpayers with turnover less than Rs.1.5 crore would
be with the State tax administration. 10% of control would be with the Central tax
administration.
Administrative control over taxpayers having turnover above Rs.1.5 crore would be equally
divided between the State and Centre tax administration

1.7 Goods and Services Tax Network:

Goods and Services Tax Network (GSTN) was set up as a private company in 2013 by the
Government under Section 25 of the Companies Act, 1956. GSTN is expected to offer the front-

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end services of registration, payment, and returns to taxpayers. It would also develop back-end
technical modules that will be utilised by 25 states that have opted in.

GSTN has also identified 34 IT and financial technology companies and tagged them as GST
Suvidha Providers (GSPs). These organisations will develop applications that will be used by
taxpayers when they interact with GSTN. The GSTN is responsible for developing and
maintaining the IT infrastructure and software for the implementation of GST.
The GSTN plays a crucial role in ensuring the smooth implementation of GST in India. It has
been instrumental in bringing about a digital revolution in the tax administration system in
India and has made it easier for taxpayers to comply with the GST regulations. In addition to
the GST portal, the GSTN also provides other services such as taxpayer registration, tax
payment processing, and return filing services.

The GSTN has also developed a robust IT infrastructure to handle the massive amounts of data
generated by the GST system, ensuring the security and privacy of taxpayer data. Apart from
managing the technology infrastructure, the GSTN also provides training and support to
taxpayers, tax professionals, and other stakeholders to help them understand the GST system
and comply with the regulations.

It has also established a dedicated helpdesk to assist taxpayers with their queries and concerns
related to the GST. The GSTN is a collaborative effort between the Central and State
Governments, with each holding a 24.5% stake in the company. The remaining stake is held by
private sector financial institutions. The GSTN operates as an independent organization,
governed by a Board of Directors, with representatives from the Central and State
Governments, as well as the private sector.

Overall, the GSTN has been a game-changer in the implementation of GST in India, enabling
a smooth transition to the new tax system and making it easier for businesses to comply with
the regulations. Its robust IT infrastructure and services have been instrumental in reducing the
compliance burden on taxpayers and improving tax administration in the country.

The GSTN has also been actively involved in the development of the GST ecosystem in India.
It has collaborated with other government agencies and private sector stakeholders to develop

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various tools and services that facilitate the implementation of GST. For instance, the GSTN
has developed APIs (Application Programming Interfaces) that allow third-party software
providers to integrate their accounting and billing software with the GST portal. This has
enabled businesses to automate their GST compliance processes, reducing the time and effort
required for compliance. Moreover, the GSTN has also been involved in conducting outreach
programs and awareness campaigns to educate taxpayers and businesses about the GST system.
These efforts have been critical in increasing compliance and improving tax administration in
the country.
In addition to its role in the implementation of GST in India, the GSTN has also gained
international recognition for its innovative use of technology in tax administration. The World
Bank has cited the GSTN as a model for other countries seeking to implement similar tax
reforms. Overall, the GSTN has been a key driver of the success of GST in India. Its innovative
use of technology and its collaborative approach to tax administration have been critical in
achieving the objectives of the GST system, such as simplifying the tax structure, reducing
compliance costs, and increasing transparency in tax

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1.8 Key Features of the GST Regime:

The GST system is characterized by the following features: GST is applicable on the “supply”
of services or goods as opposed to the earlier concept of taxation on goods manufacture, sale
of goods, or service provision.

GST is a destination-based tax structure unlike the origin-based structure that existed
previously. CGST, IGST, and SGST/UTGST are levied at rates that would be mutually agreed
upon by the states and Centre

GST will replace the central taxes mentioned below:

• Duties of Excise (medicinal and toilet needs)
• Central Excise Duty
• Additional Duties of Excise (Goods of Special Importance)
• Additional Duties of Customs (CVD)
• Service Tax

Special Additional Duty of Customs (SAD)

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• Additional Duties of Excise (Textiles and Textile Products)

• Cesses and surcharges

GST will replace the following State Taxes mentioned below

• Central Sales Tax
• Entry Tax
• State VAT
• Luxury Tax
• Purchase Tax
• Entertainment Tax, except that levied by local entities
• Taxes on lotteries and gambling
• Taxes on advertisements
• State cesses and surcharges
Taxpayers with annual turnover of Rs.20 lakh is exempt from GST. For special category states,
this cut-off is Rs.10 lakh. An option of compounding is available to small-scale taxpayers with
annual turnover of Rs.50 lakh or below. The choice of threshold exemption and the
compounding scheme are optional. Input credit of CGST shall be used only for paying CGST
on the output. Similarly, input credit of SGST/UTGST will be used only for the payment of
SGST/UTGST. Therefore, the two channels of input tax credit cannot be cross-utilised, except
for the payment of IGST for inter-state supplier.

1.9 Features of GST:

The implementation of the Goods and Services Tax (GST) in India was a historical move, as it
marked a significant indirect tax reform in the country. The amalgamation of a large number of
taxes (levied at a central and state level) into a single tax is expected to have big advantages.
One of the most important benefits of the move is the mitigation of double taxation or the
elimination of the cascading effect of taxation. The initiative is now paving the way for a
common national market. Indian goods are also expected to be more competitive in
international and domestic markets post GST implementation.

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From the viewpoint of the consumer, there would be a marked reduction in the overall tax
burden that is currently in the range of 25% to 30%. The GST, due to its self-policing and
transparent nature, is also easier to administer on an overall.

The Goods and Services Tax (GST) is a comprehensive tax system introduced in India in 2017.
Some of its key features are:

• Single tax system:

GST has replaced multiple indirect taxes with a single tax system, making it simpler and easier
to understand.

• Destination-based tax:
GST is a destination-based tax, which means that tax is collected at the place where the goods
or services are consumed.
• Input tax credit:
GST allows businesses to claim input tax credit for the taxes paid on their purchases, reducing
the tax burden on them.

• Threshold exemption:
Small businesses with a turnover below a certain limit are exempt from GST.

• Online registration and tax payment:

GST registration and tax payment are done online, making the process faster and more
efficient.

• Compliance rating:
GST provides a compliance rating to businesses based on their compliance with the tax
regulations, which helps in building trust between businesses and customers.

• Tax rates:
GST has different tax rates based on the nature of goods or services. The tax rates are 0%, 5%,
12%, 18%, and 28%. Some goods and services are exempt from GST.

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• Anti-profiteering:
GST has provisions for anti-profiteering, which prevent businesses from increasing prices due
to GST and profiting from it.

• Composition scheme:
GST has a composition scheme for small businesses with a turnover up to Rs. 1.5 crores. They
can pay a fixed percentage of their turnover as tax and file quarterly returns.

• Electronic waybill:
GST requires businesses to generate an electronic waybill or e-way bill for the movement of
goods worth over Rs. 50,000.

• GSTN:
GST has a common portal called the Goods and Services Tax Network (GSTN) for registration,
payment, and filing of returns.

• Integrated GST:
GST has an integrated GST (IGST) for inter-state transactions, which is collected by the central
government and distributed to the respective state governments.

• HSN and SAC codes:

GST requires businesses to use Harmonized System of Nomenclature (HSN) codes for goods
and Services Accounting Codes (SAC) for services, which helps in uniform classification and
taxation of goods and services.

• Input service distributor: GST allows businesses to distribute the input tax credit among their
different branches or units through an Input Service Distributor (ISD).

• GSTN Suvidha Provider (GSP):

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The GSTN Suvidha Provider is an intermediary service provider appointed by the GSTN to
provide access to the GSTN portal to taxpayers. The GSPs provide various services such as
registration, return filing, payment processing, and other value-added services.

• E-Invoicing:
The GST regime has introduced e-invoicing for businesses with an annual turnover of over Rs.
50 crores. E-invoicing is a system where businesses have to generate invoices on their
accounting or billing software, which are then uploaded to the GSTN portal for authentication

. • Real-Time Invoice Matching: The GST regime provides for real-time invoice matching,
which ensures that the input tax credit claimed by the recipient of goods or services matches
with the output tax liability of the supplier. This feature helps to prevent tax evasion and ensures
that taxpayers claim only the correct amount of input tax credit.

• Simplified Returns:
The GST regime has simplified the return filing process for taxpayers. Currently, there are three
types of returns - GSTR-1, GSTR-2A, and GSTR-3B. GSTR-1 is a monthly or quarterly return
that contains details of sales made during the period. GSTR-2A is a read-only return that
contains details of purchases made during the period. GSTR-3B is a summary return that
taxpayers have to file monthly, which contains details of output tax liability, input tax credit,
and tax payable.

• GST compliance rating for transport

The GST regime provides for a compliance rating system for transporters who move goods
from one state to another. This rating is based on factors such as timely filing of returns,
payment of taxes, and adherence to other GST rules. Transporters with a high compliance rating
can benefit from faster clearance of goods at check-posts and border checkpoints.

• GST Seva Kendras:

The GST regime has set up GST Seva Kendras, which are one-stop centers for taxpayers to
resolve any issues related to GST. These centers provide services such as GST registration,
return filing, and other GST-related services.

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• GST Council:
The GST Council is a constitutional body comprising the Finance Ministers of the central and
state governments. It is responsible for making recommendations on GST rates, rules, and other
policy matters related to the GST regime.

• Multiple GST Rates:

The GST regime has multiple tax rates for different goods and services. Currently, there are
four tax rates - 5%, 12%, 18%, and 28%. In addition, certain goods and services are exempt
from GST.

• Reverse Charge Mechanism:

The reverse charge mechanism is a provision in the GST regime where the recipient of goods
or services is required to pay the GST instead of the supplier. This mechanism is applicable in
certain cases, such as when goods or services are purchased from an unregistered dealer.

• GST Compliance Rating:

The GST regime provides for a compliance rating system for taxpayers. This rating is based on
factors such as timely filing of returns, payment of taxes, and adherence to other GST rules.
The compliance rating can impact a taxpayer's ability to do business with certain vendors or
participate in certain government tenders.

• GST Refunds:
The GST regime provides for the refund of GST paid on exports or in certain other cases where
the input tax credit exceeds the output tax liability. The refund process is done electronically
through the GSTN portal.

• GST Audit:
The GST regime requires certain taxpayers to undergo a GST audit, which is conducted by a
chartered accountant or a cost accountant. The audit is aimed at ensuring compliance with GST
rules and regulations.

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• Seamless Input Tax Credit:

The GST regime allows for seamless input tax credit across the entire supply chain, from the
manufacturer to the retailer. This feature ensures that GST is only paid on the value addition at
each stage of the supply chain, and not on the entire value of the product or service. These
features of GST aim to promote ease of doing business, facilitate trade, and create a uniform
tax system across India. Overall, GST has simplified the taxation system and made it more
transparent and efficient, helping businesses to be more competitive and contributing to the
growth of the Indian economy.

1.10 BENEFITS OF GST:

Some of the benefits of GST are:

1. Elimination of Multiple Taxes:

The biggest benefit of GST is an elimination of multiple indirect taxes. All taxes that
currently exist will not be in picture. This means current taxes like excise, octroi, sales
tax, CENVAT, Service tax, turnover tax etc will not be applicable and all that will fall
under common tax called as GST.
2. Saving more Money:
For a common man, GST applicability means the elimination of double charging in the
system. This will reduce the price of goods and services & help common man for saving
more money. It is expected that price of FMCG products, small cars, cinema tickets,
electrical wires etc. is expected to reduce.
3. 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.
4. 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.
5. More Employment:

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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.
6. 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.
7 Reduction in Tax Evasion:
GST is a single tax which will include various taxes, making the system efficient with
very little chances of corruption and Tax Evasion.
8 More Competitive Product:
As GST will address cascading effect of tax, inter-state tax, high logistics cost it will make
manufacturing more competitive. This will bring advantage to businessman and consumer.

9 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.

[Link] Structure
Less tax compliance and a simplified tax policy compared to current tax structure.

[Link] of Manufacturing Cost:

Reduction of manufacturing costs due to lower burden of taxes on the manufacturing
sector. Hence prices of consumer goods will be likely to come down.

12. Reduction in Burden on Common Man:

Lower the burden on the common man i.e. public will have to shed less money to buy the same
products that were costly earlier.

13. Increase in Production of Goods:

Increased demand will lead to increase supply. Hence, this will ultimately lead to rise in the
production of goods.

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14. Control of Black Money:

Control of black money circulation as the system normally followed by traders and shopkeepers
will be put to a mandatory check.

15. Boost to the Indian economy in the long run.

Goods and service tax is a boon for the Indian economy and the common man. It is a welcome
step taken by the government.

1.11 Drawbacks of GST:

When the aviation industry was witnessing the much-awaited growth with increasing domestic
traffic, the GST implementation might slower the rate at which the industry is expecting growth
as flying will become expensive. Service tax on fares currently range between 6% and 9%
(depending on the class of travel). With GST, the rate will surpass 15%, if not 18%, effectively
doubling the tax rate.
India, on one hand, has the lowest insurance penetration in the world (less than 5% of Indian
population & half of the global average) and on the other GST will further make the insurance
products dearer. Life, health & motor insurances will begin to cost more from April 2017 as
taxes will go up by up to 300 basis points.
IT companies have adopted a strategy of spreading their operations and stationing their
majority workforce where the cost of operations in low (e.g. Chennai, Bangalore). The GST
may lead to increasing costs of operations at their most cost-effective delivery centres. The
Banking & Financial Sector (including Insurance as stated above) might take a hit as currently
the effective tax rate in the sector is 14 per cent, which is levied only on fee component (and
not interest) of the transaction. Under GST, effective tax rate on fee-based transactions is
expected to increase to 18- 20%. With the implementation of GST a moderate increase in the
cost of financial services such as loan processing fees, debit/credit card charges, insurance
premiums, etc. is expected.

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Petroleum products form a majority import value in the Indian ecosystem. However, key
petroleum products like crude, natural gas, high-speed diesel and ATF have been kept out of
GST. Compliance costs are likely to rise because of dual indirect tax mechanism.
GST in India would impact negatively on the real estate market. It would add up to 8 percent
to the cost of new homes and reduce demand by about 12 percent.
CGST (Central GST), SGST (State GST) are nothing but new names for Central
Excise/Service Tax, VAT and CST. Hence, there is no major reduction in the number of tax
layers.
Some retail products currently have only four percent tax on them. After GST, garments and
clothes could become more expensive.
Adoption and migration to the new GST system would involve teething troubles and learning
for the entire ecosystem.
Every country that follows GST experienced a hike in inflation when they first introduced
it. They encountered the inflation by keeping tabs on prices and initiating anti-profiteering
measures at the retail

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1.12 Criticism:

Technicalities of GST implementation in India have been criticized by global financial

institutions, sections of Indian media and opposition political parties in India. World Bank's
2018 version of India Development Update described India's version of GST as too complex,
noticing various flaws compared to GST systems prevalent in other countries; most
significantly, the second highest tax rate among a sample of 115 countries at 28%. GST's
implementation in India has been further criticized by Indian businessmen for problems
including tax refund delays and too much documentation and administrative effort needed.

According to a partner at PwC India, when the first GST returns were filed in August
2017, the system crashed under the weight of filings.

The opposition Congress party has consistently been among the most vocal opponents
of GST implementation in India with party President, and leader of the opposition, Rahul
Gandhi, slamming BJP for allegedly "destroying small businessmen and industries" in the
country. He went on to pejoratively dub GST as "Gabbar Singh Tax" after an ill-famed, fictional
dacoit in Bollywood films Blaming the implementation of alleged Gabbar Singh Tax as a "way
of removing money from the pockets of the poor", Rahul has lamented it as a "big failure “while
declaring that if Congress Party is elected to power, it will implement a single slab GST instead
of different slabs. In the run-up to the elections in various states of India, Rahul has intensified
his "Gabbar Singh" jibes on Modi government.

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1.13 GST Rates:

5% Household necessities such as tea, sugar, oil, coffee etc. and lifesaving drugs are also
included under this GST slab.

12% This includes computers and processed food

18% Hair oil, toothpaste and soaps, capital goods and industrial intermediaries are covered in
this slab

28% Luxury items such as small cars, consumer durables like AC and refrigerator, cigarettes
and aerated drinks, high end motorcycles are included here.

Though edible items like sugar, tea and coffee are included in the 5% slab, milk does not attract
any tax under the new GST regime.
The idea behind these us to ensure that basic items are available for everyone but instant food
is kept out of this category.
● Basic households which currently attract 28% tax will be taxed at 18% only.
● Sweets will also be taxable at 5%.
● Tax rates on coal has been reduced from 11.69% to just 5%.
● GST also gives major push to domestic industries.

1.14 Payment Procedure under GST:

Every registered person is required to compute his tax liability on a monthly basis by setting
off the Input Tax Credit (ITC) against the Outward Tax Liability.
If there is any balance tax liability the same is required to be paid to the government. There are
3 ledgers prescribed by the government that is required to be maintained by every tax payer

1. Electronic Tax Liability Ledger

The electronic tax liability ledger shows the total tax liability of a registered person at
any point of time. This detail can be accessed on the GST portal of a registered tax payer.

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2. Electronic Cash Ledger

An Electronic Cash Ledger will also be maintained on the GST portal. It will display the total
amount deposited by the tax payer towards discharge of his tax liability or interest or late fee
or penalty any other amounts. Also, it is now mandatory for businesses making payment for
more than Rs 10,000 to do it electronically.

3. Electronic credit ledger

All the taxes paid on the inputs would be recorded in the electronic credit ledger. The input tax
credit in each of the cases mentioned below, shall also be transferred to the electronic credit
ledger:
ITC available to the branch for the amount of credit transferred by ISD ITC allowed on input
held in stock and the semi-finished or finished goods would be credited to electronic credit
ledger if the taxpayer applies for registration within 30 days of becoming liable to pay tax.
ITC available on the input held in stock and semi-finished or finished goods by a taxpayer in
the composition scheme converting to a normal taxpayer shall be transferred to electronic credit
ledger. ITC available due to the taxes paid under the reverse charge mechanism shall also be
transferred to the electronic credit ledger.
ITC available on goods/services used for the business and other purposes shall only be allowed
to the extent applicable for business purposes. All the payments under GST have to be made
by either using the input tax credit available in the electronic credit ledger or through the
electronic cash ledger.

Interest on delayed payments

Per Section 50 of the CGST Act, interest will start accruing on a delayed payment the day after
the payment was due. This applies to both missed payments and payments not made in full.
The payment of interest is automatic and should be made voluntarily, even without a demand.
The interest rate, not to exceed 18 percent, will be determined by the Government on the
recommendation of the GST Council. In the case of undue or excess claim of ITC, or undue or
excess reduction in output tax liability, interest shall be paid at a higher rate, not to exceed 24
percent, to be notified by the Government.

1.15 Why GST is needed in India?

GST or Goods and Services Tax was introduced in India to bring about a unified, simplified,
and transparent tax regime across the country. The need for GST in India arose due to the
following reasons:

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• Simplification of Tax Structure: The Indian tax system was previously fragmented and
complex, with multiple taxes levied at different stages of production and distribution. GST has
simplified the tax structure by replacing various indirect taxes such as Central Excise Duty,
Service Tax, and Value Added Tax (VAT) into one comprehensive tax.
• Removal of Cascading Effect: The previous tax structure in India resulted in cascading taxes,
which means taxes were levied on top of taxes. GST has removed the cascading effect of taxes
by providing input tax credit, which allows businesses to claim credit for taxes paid on inputs
against the taxes they collect on their output.
• Promotion of Ease of Doing Business: The implementation of GST has made compliance
easier and less time-consuming for businesses by removing the need for multiple registrations
and filings for various taxes. GST has also led to the reduction in transportation time and costs,
as it has eliminated the need for check posts and multiple state-level taxes.
• Promotion of Trade and Industry: GST has facilitated the seamless movement of goods and
services across states by creating a common market. This has resulted in the promotion of trade
and industry by reducing the cost of goods and services and increasing efficiency in logistics
and supply chain management.
• Increase in Tax Revenue: GST has increased the tax revenue for the government by widening
the tax base and improving tax compliance. The implementation of GST has led to the inclusion
of several previously unorganized sectors under the tax net, resulting in increased tax revenue
for the government.
• Integration of Indian Economy: GST has integrated the Indian economy by creating a unified
market, removing trade barriers, and promoting competition among businesses. It has brought
about a level playing field for businesses across the country, irrespective of their location or
size.
• Boost to Manufacturing and Export: GST has provided a boost to the manufacturing sector
by promoting the Make in India initiative. The removal of cascading taxes and the availability
of input tax credit has made manufacturing more cost-effective and efficient, leading to an
increase in exports.
• Transparency and Accountability: GST has brought about transparency and accountability in
the tax system by reducing the scope of tax evasion and increasing tax compliance. The
implementation of GST has led to the creation of a robust IT infrastructure, enabling the
government to track transactions and detect instances of tax evasion.
• Alignment with International Standards: The implementation of GST has aligned the Indian
tax system with international standards, making it easier for foreign investors to understand
and invest in India. GST has also made it easier for Indian businesses to compete in the global
market by reducing the cost of production and increasing efficiency.
• Reduction in Black Economy: GST has reduced the scope of the black economy by bringing
several previously unorganized sectors under the tax net. The implementation of GST has led
to increased formalization of the economy, resulting in the reduction of cash transactions and
an increase in tax compliance.

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Overall, GST was needed in India to promote integration, boost manufacturing and exports,
bring transparency and accountability, align with international standards, and reduce the scope
of the black economy.
Introduction of GST is considered to be a significant step in the reform of indirect taxation in
India. Amalgamating of various Central and State taxes into a single tax would help mitigate
the double taxation, cascading, a multiplicity of taxes, classification issues, taxable event, etc.,
and leading to a common national market.
VAT rates and regulations differ from state to state. On the other hand, GST brings in uniform
tax system across all the states. Here, the taxes would be divided between the Central and State
government.
1 Impact of GST on Indian Economy:
GST offers several benefits to our economy.
Here are some key advantages:
• Create unified common national market for India, giving a boost to Foreign investment and
“Make in India” campaign
• Boost export and manufacturing activity and leading to substantive economic growth
• Help in poverty eradication by generating more employment
• Uniform SGST and IGST rates to reduce the incentive for tax evasion.
2 Impact of GST on Consumers:
GST is also beneficial for consumers. Here is how it impacts the Indian consumers:
• Simpler Tax system
• Reduction in prices of goods & services due to elimination of cascading
• Uniform prices throughout the country
• Transparency in taxation system
• Increase in employment opportunities
3 Impact of GST on Traders
GST is also having some positive impact on traders. Let’s see how it affects the traders: •
Reduction in multiplicity of taxes
• Mitigation of cascading/ double taxation through input tax credit
• More efficient neutralisation of taxes especially for exports
• Development of common national market
• Simpler tax regime
• Fewer rates and exemptions

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• Distinction between Goods & Services no longer require

1.16 TEXTILE INDUSTRY

Integration of Indian Economy: GST has integrated the Indian economy by creating a unified
market, removing trade barriers, and promoting competition among businesses. It has brought
about a level playing field for businesses across the country, irrespective of their location or
size.

Boost to Manufacturing and Export: GST has provided a boost to the manufacturing sector by
promoting the Make in India initiative. The removal of cascading taxes and the availability of
input tax credit has made manufacturing more cost-effective and efficient, leading to an
increase in exports.
Transparency and Accountability: GST has brought about transparency and accountability in
the tax system by reducing the scope of tax evasion and increasing tax compliance. The
implementation of GST has led to the creation of a robust IT infrastructure, enabling the
government to track transactions and detect instances of tax evasion.

Alignment with International Standards: The implementation of GST has aligned the Indian tax
system with international standards, making it easier for foreign investors to understand and
invest in India. GST has also made it easier for Indian businesses to compete in the global
market by reducing the cost of production and increasing efficiency.

Reduction in Black Economy: GST has reduced the scope of the black economy by bringing
several previously unorganized sectors under the tax net. The implementation of GST has led
to increased formalization of the economy, resulting in the reduction of cash transactions and
an increase in tax compliance.
Overall, GST was needed in India to promote integration, boost manufacturing and exports,
bring transparency and accountability, align with international standards, and reduce the
scope of the black economy.

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1.17 Impact of GST on Textile Industry:

Despite some changes under the GST regime, the textile sector is in for certain
advantages with the implementation of the regime. The tax regime will impact the
textile industry by bringing in following changes.
● Introducing a break in input credit changes
● Reduction in manufacturing cost.
● Allowing input capital on capital goods.
● Increase in export of textile Products.

The impact of GST on the textile industry in India has been significant. Here are some of the
key impacts:

• Increased compliance:
GST has streamlined the taxation system and reduced the number of taxes that textile
companies need to pay. This has simplified the tax filing process and increased compliance
among textile companies.

• Increased transparency:
GST has brought greater transparency to the textile industry by reducing the scope for tax
evasion and fraud.

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• Increased competitiveness:
GST has removed the cascading effect of taxes, which has reduced the cost of production and
made Indian textile products more competitive in the global market.

• Increased input tax credit:

Under the GST regime, textile companies can claim input tax credit on their purchases. This
has reduced the cost of raw materials and improved the profit margins of textile companies.

• Negative impact on unorganized sector:

The implementation of GST has had a negative impact on the unorganized sector of the textile
industry, as smaller companies have struggled to comply with the new tax regulations.

• Impact on textile exports:

The GST regime has had a mixed impact on textile exports. While the reduction in tax rates on
inputs and the availability of input tax credit have reduced the cost of production, the high tax
rates on certain goods and services have increased the cost of exports.
Certainly, here are some more points on the impact of GST on the textile industry:

• Reduced transportation time and cost:

Under the GST regime, the introduction of the e-way bill system has reduced transportation
time and cost, making it easier for textile companies to transport goods across state borders.

• Increased demand for branded products:

The implementation of GST has led to a shift in consumer preferences towards branded
products as they are now priced competitively with unbranded products.

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• Improved supply chain management:

GST has brought greater transparency to the supply chain of the textile industry by allowing
companies to track their purchases and sales through the GSTN portal, which has led to
improved supply chain management.

• Positive impact on textile retail sector:

The implementation of GST has had a positive impact on the textile retail sector as it has
reduced the tax burden on retailers and made textile products more affordable for consumers.

• Simplified tax structure:

The implementation of GST has simplified the tax structure for textile companies as it has
replaced multiple indirect taxes with a single tax system, making it easier for companies to
understand and comply with the tax regulations.

• Impact on employment:
The implementation of GST has had a mixed impact on employment in the textile industry.
While the increased competitiveness has led to the growth of the industry, the negative impact
on the unorganized sector has resulted in job losses.

In summary, while the implementation of GST has had some challenges for the textile industry,
it has also brought about several positive impacts, including increased compliance,
transparency, competitiveness, and supply chain management

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CHAPTER 2 RESEARCH
METHODOLOGY

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Synopsis
2.1 Research Design
2.2 Objectives of the study
2.3 Methods of Data Collection
2.4 Sampling Plan
2.5 Sample Plan and Sample Size
2.6 Limitations of Study
2.7 Problem of Study
2.8 Area of Study

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Research Design

A research design is a comprehensive plan guiding researcher to achieve its objectives. It is a

detailed blueprint of the research. It details the procedures necessary for obtaining the
information needed to structure or solve research problem. Research design is the ad hoc plan,
structure and significant strategy of exploration apprehended so as to acquire solutions to
research problems and to control any discrepancy or any variance.
It is the specification of certain methods and procedures for getting the information needed. It
is an overall operational framework of the project that stipulates what information is to be
gathered, from which all informants and by using what methods and procedures. Thus a
research design can be expresses as a blueprint, plot, guide or outline for gratifying research
objectives.

Research design is needed because it eases the glib sailing of the research options ; thereby
creating research as effectual as possible generating maximal information with minimal
expenditure of effort, time and money. Just for better, economical and pretty construction of a
house, we need a blue print (or what is commonly called the chart or plot of the house) well
thought out and prepared by an expert architect, similarly we need research design or a plan in
advance of data collection and analysis for our research study. In this chapter following
elements of research design are discussed at length.

Objectives Data
Collection Sampling
Techniques
Area of Study

2.2 Objectives
Objectives of Present Study:
• To understand the concept of goods and service tax.

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• To understand how GST work in textile industry.

• To find the problems face by business while implementing GST.
• To Suggest measures for solving problems.

2.3 Methods of Data Collection:

Primary Data Collection:

Primary data source is an original data source, that is, one in which the data are collected first
hand by the researcher for a specific research purpose or project. Primary data can be collected
in a number of ways. Primary data can be collected through various methods such as surveys,
interviews, observations, experiments, and focus groups. These methods involve collecting
information directly from individuals, organizations, or other sources relevant to the research
question or topic. The advantages of using primary data include the ability to collect data that
is specific to the research question, ensuring that the data is relevant and accurate. It also
provides researchers with control over the data collection process, allowing them to design the
research instruments and methods that best fit their research needs. However, collecting
primary data can be time-consuming, expensive, and require significant resources, such as
human and financial resources. It also requires specialized skills and knowledge to design and
implement research instruments and methods that are reliable and valid. Overall, primary data
is a valuable source of information for research and analysis, providing researchers with
accurate and relevant data to answer their research questions or address specific issues.

Types of Primary Data:-

Observation: - It is the most commonly used method of data collection in the humanities and
social sciences. To some extent this method is also used in natural sciences. In natural sciences
observation is conducted in natural settings while in the social sciences an artificial situation
can also be created where the observer can observe the participants. Observation can be
conducted without the knowledge and awareness of the participant’s even, if the participants
are aware or not aware of the observation the observer should understand the ethics of the

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privacy of the participants. In disguise observations the observer has the best opportunity to
observe the participants, the observer get true and unbiased results

Interviews :- Interviews are another important method of primary data collection. Interviews
are expensive as compared to other methods of data collection. In the interview the interviewer
collects information from each respondent independently. Due to this reason it becomes costly
as well as time consuming. Interview as a research tool can only be used if the researcher has
plenty of time and resources, otherwise it will be wastage of time and money to start
interviewing. Interviews are more reliable as compared to observation. The interview is
basically conducted in social science studies. In the interview the interviewer can make an
inventory of questions before starting the interview, in another case the interviewer asks
questions spontaneously. Spontaneous questions are better if the purpose of the interview is to
find out in depth knowledge

Questionnaire: - One of the most commonly used methods of data collection in research.
Questionnaires are formulated to get to the point information on any subject area. The
questionnaire is an inexpensive method of data collection as compared to other methods of
primary research. Questionnaires can be submitted by the vast audience at a time and the
responses can be obtained easily. The only drawback of questionnaire is the low feedback as
several people do not return questionnaires on time. Several respondents do not show true
responses in questionnaires. In the interview the interviewer can observe the gestures of the
respondents but in questionnaires the respondents do not know whether the answers are
genuinely true or not.

Experiments: - Experiments are the most reliable source of data collection in natural sciences.
Experiments can be conducted in any area of scientific study, whether it is chemistry, biology,
physiology, physics, astronomy or mathematics. Experiments consist of logical series of
actions that result in the answer to your query. Experiments can be conducted in a controlled
environment as well as in natural situations. In experiments the experimenter controls the
external factors while looking for the effect of internal factors. Experiments can be conducted
in the field as well as in laboratories.

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Survey Responses: - Generally used for studies in the social sciences and behavioural studies,
researchers will create surveys with questions pertaining to their study and hand them out to
participants, who will respond. Survey sample groups are usually larger than for other research
methods because responses are generally lower. The researchers then tabulate the answers and
results of the survey to determine if the research proves or disproves their hypothesis. Most
research surveys are anonymous to prompt more honest answers from participants.

Telephonic interview: - Another form of personal interviewing is telephonic interview which

has been used specifically when the respondents are not available in nearby areas. This sort of
interviews is conducted when you have to gather some information from a specific area where
you can’t easily reach in the limited time so you call them and ask questions. There are some
cons of this system e.g. the interviewer is not able to observe the expression of responding
person and secondly, it’s not economical to call every single responder and take 15-20 minutes
on call. Still people use this technique especially when it is tough for them to travel and get the
responses personally.

Advantages of primary data

Resolve specific research issues
Performing your own research allows you to address and resolve issues specific to your own
business situation. The collected information is the exact information that the researcher wants
to know and he reports it in a way that benefits the specific situation in an organization.
Marketers and researchers are asked to find data regarding specific market instead of finding
data for the mass market. This is the main difference from secondary data.

Better accuracy
Primary data is much more accurate because it is directly collected from a given population
.
Higher level of control
The marketer can control easily the research design and method. In addition, you have a higher
level of control over how the information is gathered.

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Up-to-date information
The primary market research is a great source of latest and up-to-date information as you collect
it directly from the field in real time. Usually, secondary data is not so up-to-date and recent.

You are the owner of the information

Information collected by the researcher is their own and is typically not shared with others.
Thus, the information can remain hidden from other current and potential competitors. The
primary data are original and relevant to the topic of the research study so the degree of
accuracy is very high. Primary data is that it can be collected from a number of ways like
interviews, telephone surveys, focus groups etc. It can be also collected across the national
borders through emails and posts. It can include a large population and wide geographical
coverage. Moreover, primary data is current and it can better give a realistic view to the
researcher about the topic under consideration. Reliability of primary data is very high because
these are collected by the concerned and reliable party.

Disadvantages of primary data

For collection of primary data where interview is to be conducted the coverage is limited and
for wider coverage a more number of researchers are required. A lot of time and efforts are
required for data collection. By the time the data collected, analysis and report is ready the
problem of the research becomes very serious or out dated. So the purpose of the research may
be defeated. It has design problems like how to design the surveys. The questions must be
simple to understand and respond. Some respondents do not give timely responses. Sometimes,
the respondents may give fake, socially acceptable and sweet answers and try to cover up the
realities. 9 With more people, time and efforts involvement the cost of the data collection goes
high. The importance of the research may go down. In some primary data collection methods
there is no control over the data collection. Incomplete questionnaire always give a negative
impact on research. Trained persons are required for data collection. In experienced person in
data collection may give inadequate data of the research.

• More expensive
It could be very expensive to obtain primary data collection because the marketer or the
research team has to start from the beginning. It means they have to follow the whole study
procedure, organizing materials, process and etc.

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• Time consuming
It is a matter of a lot of time to conduct the research from the beginning to the end. Often it is
much longer in comparison with the time needed to collect secondary data.

• Can have a lot of limits

Primary data is limited to the specific time, place or number of participants and etc. To compare,
secondary data can come from a variety of sources to give more details.

• Not always possible

For example, many researches can be just too large to be performed by your company.

. Difficult to do
One person has to go at a particular place and collect the information

SECONDARY DATA COLLECTION

Secondary data is data gathered from studies, surveys, or experiments that have been run by
other people or for other research. Secondary data refers to data which is collected by someone
who is someone other than the user. Common sources of secondary data for social science
include censuses, information collected by government departments, organizational records
and data that was originally collected for other research purposes. They are the data that are
sourced from someplace that has originally collected it. This means that this kind of data has
already been collected by some researchers or investigators in the past and is available either
in published or unpublished form. This information is impure as statistical operations may have
been performed on them already. An example is an information available on the Government
of India, Department of Finance’s website or in other repositories, books, journals, etc.
Secondary data in research consists of several sources. Sometimes primary data cannot be
obtained or it becomes difficult to obtain primary data, in such cases the researcher is bound to
use secondary data. The reliability, authenticity and generalizability of secondary data is less
as compared to primary data as it has been already manipulated and used by other people.

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Obtaining primary data requires more human and non-human resources like time, money and
energy, therefore in some studies researchers consider secondary data much better and feasible.

Types of secondary data

Published Data
Is the most basic secondary source of information for data collection. Published data can be
obtained from various sources like books, magazines, newspapers, journals and periodicals etc.
Published data is the most reliable secondary source of information. The validity of published
data is greater than unpublished data. The majority of published records can be obtained from
libraries and archives. Libraries carry a vast variety of books, journals and periodicals. You can
use this information as a reference in your thesis, dissertation or other research articles.
Periodicals and journals provide up to date information and they are also available in libraries.
In social sciences and humanities newspapers can also be used to get references.

Newspaper
Are an excellent source of data collection historical research. Some record cannot be obtained
from any other source except newspaper as it does not exist in books and journals. Old
newspapers record can be obtained from the archives. In published data books are easier to use
as data are arranged in order in books while newspapers are difficult to use because in
newspapers there is no list of contents or bibliography.

Personnel records
Can also be very useful in research if data is unavailable in published from. Some personal
sources like letters and diaries are invaluable assets. Letters and diaries can have a personal
bias as they are written by human beings and they contain personal judgement. The chances of
bias should be eliminated before using these sources for references.

Electronic Data
Like movies, documentaries and television programs can also be sued for recording data in
secondary research. In the social sciences and humanities it can be a good source of
information.

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Government Records
are available in the form of government surveys, tax records, census data and other statistical
reports. They are easily available and widely used in research studies.

Public Sector Records

are available in NGOs as well as some other public sector organization keeps records. These
records can be published or unpublished but they carry information that cannot be obtained
from other sources.

Internet
In today’s world is the fastest growing source of information. The internet has become mature
and today you can get any information from the internet. Most of the books are available on
the internet in e-book format. You can get information while staying at home.

Advantages of secondary data

• Ease of Access
The secondary data sources are very easy to access. The internet world changed how the
secondary research exist. Nowadays, you have so many information available just by clicking
with the mouse in front of the computer.

• Low Cost or Free

The majority of secondary sources are absolutely free for use or at very low costs. It saves not
only your money but your efforts. In comparison with primary research where you have to
design and conduct a whole primary study process from the beginning, secondary research
allows you to gather data without having to put any money on the table.

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• Time-saving
As the above advantage suggests, you can perform a secondary research in no time. Sometimes
it is a matter of a few Google searches to find a credible source of information.

• Generating new insights and understandings from previous analysis

Re-analyzing old data can bring unexpected new understandings and point of views

• Longitudinal analysis
Secondary data allows you to perform a longitudinal analysis which means the studies are
performed spanning over a large period of time. This can help you to determine different trends.
In addition, you can find secondary data from many years back up to a couple of hours ago. It
allows you to compare data over time.

Disadvantages of secondary data

• Not specific to your needs
Here is the main difference with the primary method. Secondary data is not specific to the
researcher’s need due to the fact that it was collected in the past for another reason. That is why
the secondary data might be unreliable and unuseful and in many business and marketing cases.
Secondary data sources can give you with a huge amount of information, but quantity does not
mean appropriateness.

• Lack of control over data quality

You have no control of the data quality at all. In comparison, with primary methods which are
largely controlled by the marketer, secondary data might lack quality. It means the quality of
secondary data should be examined in details since the source of the information may be
questionable. As you relying on secondary data for your decision-making process, you must
evaluate the reliability of the information by finding out how the information was collected and analysed

• Biasness
As the secondary data is collected by someone else than you, typically the data is biased in
favor of the person who gathered it. This might not cover your requirements as a researcher or
marketer.

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• Not timely
Secondary data is collected in the past which means it might be out-of-date. This issue can be
crucial in many different situations.

• Not proprietary Information

Generally, secondary data is not collected specifically for your company. Instead, it is available
to many companies and people either for free or for a little fee. So this is not exactly an
“information advantage” for you and your competitors also have access to the data.

Present Study
For the present study secondary data was collected through various sources which include
various books, journals, periodicals, magazines, reports and various web sources.
The details of the same are mentioned in the bibliography. For the present study data was also
collected through primary source. The primary source includes collecting responses through a
pre-designed questionnaire from entrepreneurs

2.4 Sampling Plan

In research terms a sample is a group of people, objects, or items that are taken from a larger
population for measurement. The sample should be representative of the population to ensure
that we can generalise the findings from the research sample to the population as a whole.

Methods:
1. Simple random sampling
In this case each individual is chosen entirely by chance and each member of the population
has an equal chance, or probability, of being selected.
2. Systematic sampling:
Individuals are selected at regular intervals from the sampling frame. The intervals are chosen
to ensure an adequate sample size.

3. Stratified sampling:

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In this method, the population is first divided into subgroups who all share a similar
characteristic. It is used when we might reasonably expect the measurement of interest to vary
between the different subgroups, and we want to ensure representation from all the subgroups

4. Clustered sampling:
In a clustered sample, subgroups of the population are used as the sampling unit, rather than
individuals

5. Convenience sampling:
Convenience sampling is perhaps the easiest method of sampling, because participants are
selected based on availability and willingness to take part.

6. Quota sampling:
This method of sampling is often used by market researchers. Interviewers are given a quota
of subjects of a specified type to attempt to recruit

7. Judgement sampling:
Also known as selective, or subjective, sampling, this technique relies on the judgementof the
researcher when choosing who to ask to participate.

8. Snowball sampling:
This method is commonly used in social sciences when investigating hard-to-reachgroups

2.5 Sample Plan and Sample Size

For the present study data was collected from 100 respondents belonging to the city of
Ulhasnagar. The respondents were businessmen who are engaged in Textile Business. The
sample of respondents was selected purely on the basis of Simple Random Sampling

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2.6 Limitations of study

The study of the impact of GST on the textile industry may have certain limitations, including:

1. Timeframe:
Since GST was implemented in India in 2017, any study on the impact of GST on the textile
industry may be limited to the time period after its implementation.

2. Data availability:
The availability of data related to the textile industry before and after the implementation of
GST can be a limitation. Accurate data may not be available, which can limit the ability to
analyze the impact of GST in Textile Industry

3. Regional variations:
The impact of GST on the textile industry may vary from region to region. This could be due
to factors such as the size of the textile industry in a particular region, the type of textile
produced, and the prevalence of the informal sector.

4. Other factors:
There are several other factors that can impact the textile industry, such as changes in
government policies, market trends, and global economic conditions. It can be challenging to
isolate the impact of GST from the impact of other factors.

5. Limited scope:
The study may be limited to the impact of GST on the textile industry in India and may not
account for the impact of GST on the global textile industry.

6. Complexity of GST:
GST is a complex tax system that involves multiple tax rates, exemptions, and input tax credits.
It can be challenging to understand and analyze the impact of GST on the textile industry due
to its complexity.

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7. Lack of research:
While there have been some studies on the impact of GST on various industries, there may be
a lack of research specifically on the textile industry. This could limit the availability of
information and data on the topic.

8. Limited sample size:

The study may be limited to a specific sample size, such as a particular region or type of
textile industry. This could limit the generalizability of the findings to other regions or types
of textile industries.

9. Methodology:
Different studies may use different methodologies to assess the impact of GST on the textile
industry. These variations could affect the comparability of different studies.

10. External factors:

The impact of GST on the textile industry may also be affected by external factors such as
changes in global trade policies, fluctuating raw material prices, and shifts in consumer
preferences, which could make it difficult to isolate the effects of GST.

11. Access to data:

Researchers may have difficulty accessing data on the textile industry and GST
implementation, especially if the industry is largely unorganized or if government data is
limited

[Link] of comparability:
Different states and regions may have different rates of GST compliance and implementation,
making it difficult to compare the impact of GST on the textile industry across regions.

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2.7 Problems of Study

1. Difficulty in measuring impact:
The impact of GST on the textile industry can be difficult to measure. For example, it may be
challenging to determine whether changes in the textile industry are due to GST or other factors
such as changes in consumer preferences

2. Changes in GST:
The impact of GST on the textile industry may change over time as the tax system evolves.
Any study on the topic may not take into account future changes to GST that could impact the
textile industry.

3. Informal sector:
A significant portion of the textile industry in India is informal, which can make it difficult to
analyze the impact of GST on the industry. It can be challenging to collect data and information
on the informal sector, which may limit the scope of the study.

4. Difficulty in obtaining data:

Collecting data on the textile industry before and after the implementation of GST can be
challenging. It may be difficult to obtain accurate data on various aspects of the industry such
as production, sales, and taxes paid.

5. Limited access to industry experts:

It may be difficult to access industry experts such as textile manufacturers, traders, and retailers
who can provide insights into the impact of GST on the industry.

6. Bias:
There may be bias in the data collected or in the way the study is conducted. For example, the
study may be conducted by a group with a vested interest in promoting the benefits of GST or
by a group that is critical of the tax system.

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7. Lack of control group:

It may be difficult to find a control group to compare the impact of GST on the textile industry.
For example, it may be challenging to find a similar industry that was not impacted by GST.

8. Causality:
Correlation does not always imply causality. Even if a statistical relationship is found between
GST and the textile industry, it may not necessarily mean that GST caused the changes
observed in the industry.

9. Generalizability:
The findings of the study may not be generalizable to other countries or regions. The impact
of GST on the textile industry in India may be different from the impact of similar tax
systems in other countries.

10. Confounding variables:

Other factors, such as changes in government policies or global economic conditions, may
impact the textile industry at the same time as GST. It can be challenging to separate the impact
of GST from these other factors.

2.7 Area of Study

Ulhasnagar is a town located in the Thane district of Maharashtra state in Konkan division,
located about 55 km from Chhatrapati Shivaji Maharaj Terminus railway station. This city is
part of Mumbai Metropolitan Region managed by MMRDA. It had an estimated population of
506,098 at the 2011 Census. Ulhasnagar is a municipal town and the headquarters of the Tahsil
bearing the same name. It is a railway station on the Mumbai Pune route of the Central Railway
zone.1 The Governor-general of India, C. Rajagopalachari named the town Ulhasnagar and he
also laid the foundation stone on on 8 August 1949 for the township.

Not actually, it was called Ulhasnagar, because of its close proximity to Ulhas Plateau and its
valley. Ulhasnagar, a colony of migrants in the aftermath of the Partition of India (1947), is 61
years old. Situated 58 km from Mumbai, the once-barren land has developed into anurban town

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of Thane district. The town covers an area of 13 square kilometers and is divided into 285
blocks. It is a centre for the production of rayon silk, dyes, ready-made garments, electrical /
electronic appliances & confectionaries. The total length of existing Roads & Streets in the
town measures 352 kilometers. The town is served by underground & open-surface drainage,
night soil being disposed of by septic tank latrines.

The town gets a protected water supply through MIDC. Sanctioned Water Quota at various
tapping points is 112 MLD. Fire-fighting service is also available in the town. 60 private
hospitals with a total bed- strength of 840 beds 3 Government hospitals with total bed-strength
of 356 beds, 255 dispensaries / clinics, 100 RMP and a family planning centre cater to the
curative and preventive health needs of the town population

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CHAPTER 3
REVIEW OF LITERATURE

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Synopsis

3.1Literature
3.2 Gap Analysis

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3.1 Literature

1. Sreeshma, Aswamalika and Aparna (2018) Goods and Service tax is a type of indirect
tax which is levied on the sale of goods and services in India. The Goods and Services Tax
was launched on 1 July 2017 and was relevant throughout India which textiles and cloth
industry is connected to the total growth of the Indian and the world economy. AkhiAkter
(2017) analysed the impact of GST on Indian textile and clothing industry andfound that the
Textile industry body, The Confederation of Indian Textile Industry 1. Sreeshma, Aswamalika
and Aparna (2018) Goods and Service tax is a type of indirect tax which is (CITI)on 3 July
has petitioned the government to reduce the GST rate to 12% from 18% of Manmade fibre
and yarn otherwise the producers will be forced to import the yarn and fabrics from China,
Indonesia and South Korea at cheaper rate.

2. Virajdhakan (2018) The study stated that the lack of information coupled with the
apathy towards reforms may paralyze the speedy implementation of this system especially in
small towns where still not a single orientation programs have been planned and executed till
date by competent authorities. The association of business turnover with the apprehensions
can be issue worth considering when designing training programs and modules. In lien of this
it is suggested associations, NGO’s should come forward to organize such programs at town
level to orient small traders so that nobody is left out of this biggest tax reform in the country.
A single rate would help to maintain simplicity and transparency by treating all goods and
services as equal without giving special treatment to some ‘special’ goods and/or
[Link](2017)in hispaper inquring the level of awareness towards GST among
the small business owners in Rajasthan state, found that the main areas to be focused include
Training errors and Computer software availability.

3. Jyotsna Oberoi (2018) GST game is not for weak hearted. GST will help in improving
the economy but in long run and that is why it is called a “Reform”. GST taxation system
will cause inconvenience to citizens, businesses, and manufacturers as this system is
completely new to them but with the time people will learn and get the hang of it. GST will
usher in a plethora of 1lipchanges in the textile business of India with an overall positive
impact on the sector. GST implementation is expected to produce impetus to various reforms
and policy measures envisaged by the Government for the ease of doing business and to
usher India into a simple, transparent and tax friendly regime. It will simplify the present
procedures by converging various complex indirect taxes into a unified platform and
conjointly improve the “textile export” state of affairs of India. The compliant would notice
their goods become
competitive and the sector would conjointly take part in contributing to tax in addition to
providing employment and other social benefits.

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4. Brew (2012) The authors have studied the relation between the mode of collection of
VAT revenues with the target of VAT collection for the municipality of Tarkwa –Nsuaem in
West Ghana. The authors have used questionnaires and interviews to collect the data and then
analysed it using the regression analysis and established that the methodof VAT collection in
the said municipality was above average. The study is important because VAT is one of the
primary revenue generators for any Government.

5. Rajatdeb (2017) The study has reviewed the prior literature on tax reforms and GST
to synthesize the research findings and to direct the future research avenues. Literature on tax
reform has attained momentum in developing countries since last two decades and in India
when it has decided to implement GST from 2017-18. Adopting the Systematic Literature
Review technique by accessing the academic e-journals of selective publishers and applying
a filtering process, the study has reviewed 119 sample papers published during 2002-2016 by
focusing objectives and results of those cited papers. Results have documented tax reforms
have executed globally with multiple objectives; it has admitted few limitations, practice
implications have pointed out and have sketched the road map for posterior studies especially
in the transition period in India when it would shortly move to GST regime.

6. By clear tax (2017) The Indian textile industry provides employment to a large
number of skilled and unskilled workers in the country. It contributes about 10% of the total
annual export, and this value is likely to increase under GST. GST would affect the cotton
value chain of the textile industry including all garments for men and women like shirts,
trousers, saree, apparels, shoes and any more clothing materials which is chosen bymost
small medium enterprises as it currently attracts zero central excise duty (under optional
route).Impact of GST on Textile Industry According to the Ministry of textiles (Government
of India) total textile export during 2011-12 was US$ 33161.74 and the total value of textile
machinery produced during the same period was Rs. 5280 crores.

7. Banerjee, Mona Banerjee, Kishore Kumar Das (2016) The Goods and Service Tax
(GST) is a comprehensive tax levy on manufacture, sale and consumption of goods and
services. It is a tax on value addition at each stage having the benefit of availing continuous
set-off of Input Tax Credit thereby giving relief to the taxpayers from the burden of 7. The
Goods and Service Tax (GST) is a comprehensive tax levy on manufacture, sale and
consumption of goods and services. It is a tax on value addition at each stage having the
benefit of availing continuous set-off of Input Tax Credit thereby giving relief to the
taxpayers from the burden of cascading i.e. tax on tax. This new form of taxation replaces
almost all of the indirect taxes contributing to a significant improvement towards a
comprehensive indirect tax reform in India. The authors study the past literature relating to
GST that helps them to form a critical review on the above topicthereby suggesting areas of
future research for filling up the research gaps.

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8. Tanushree Gupta (2016) In the year 2000, for the first time the idea of initiating the
GST was made by the then BJP Government under the leadership of AtalBehari Vajpayee. An
empowered committee was also formed for that, headed by AsimDasgupt. The committee
was formed to design the model of the GST and at the same time inspect the preparation of
the IT department for its rollout. In 2011, the previous United Progressive Alliance
Government also introduced a Constitution Amendment Bill to facilitate the introduction of
the GST in the LokSabha but it was rejected by many States. Now in year 2016 this bill got
green signal under the umbrella of Modi government.

9. Ciobansu, (2012) The authors trace the correlation between the types of taxes and
their role in the budgeted revenues and the fiscal development of Romania. Indirect tax by its
very nature is easier to govern, is neutral to status of tax payer, and increases revenue but
leads to inflation. On the other hand, direct taxes depend on the tax payer and are difficult to
govern.
Further, indirect tax helps the government to an extent to direct consumption of the public. The
authors conclude that both the taxes are important for overall growth ofthe economy.

10. Subhamoy Banik Advocate Arundhati das (2017) GST or Goods and Services Tax, the
greatest tax reform in India since independence which has been long pending. GST is meant
to simplify the indirect tax regime of India by replacing a host of taxes by a single unified
tax. GST is the only indirect tax that directly connects all the sector of Indian economy thus
enhancing the economic growth of the country by creating a single unified market. More than
160 countries of the world have implemented GST so far followed by France. The idea of
GST in India was proposed by Atal Bihari Vajpayee in 1999 and a committee was set up
under the leadership of Asim Das Gupta the then finance minister of West Bengal. It was
supposed to be implemented from 1st April 2010 under flagshipof P Chidambaram then
finance minister of UPA government but due to political issues and conflicting interests of
various stakeholders it did not came into force. In May 2016 the constitutional amendment
bill for GST was passed by LokSabha and deadline of 1st April 2017 to implement GST was
set by Arun Jaitley the finance ministerof India. However, there is a huge outcry against its
implementation.

11. [Link] Kailashchandra Agrawal (2017) GST there is a condition chaos and
confusion among common man. The aim this research paper is to explain the mechanism of
GST and its effects on Indian economy. In India, the idea of GST was contemplated in 2004
by the Task Force on implementation of the Fiscal Responsibility and Budget Management
Act, 2003, named Kelkar Committee. The Kelkar Committee was convinced that a dual GST
system shall be able to tax almost all the goods and services and the Indian economy shall be
able to have wider market of tax base, improve revenue collection through levying and
collection of indirect tax and more pragmatic approach of efficient resource allocation. Under
the Goods and Service Tax mechanism, every person is be liable to pay tax on output and

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shall be entitled to enjoy credit on input tax paid and tax shall be only on the amount of value
added.

12. Rajitturukmane and Sujitgulhane (2017) Textile industry, one of the largest and highly
labour-intensive manufacturing sectors in India, is one of the identified benefactors of this
campaign. India is one of the few textiles producing countries in the world which can claim
the complete value chain productivity strength has the potential to repair the segments
perception and the country’s involvement in the world textile scenario. India is the only
country in the world that offers the unique combination of democracy, demography, and
demand. This combined with the newest international strategy of the government will lead to
more job creation, boosting the national economy and give the Indian economy global
recognition. The textile sector has the capability to contribute highest to the Indian economy
by providing more jobs and contributing to the overall GDP.

13. Sonypandey (2018) Textile sector of India is one of the top contributors toward the
development of the Indian economy, concerning GDP, employment, export promotion, etc.
Known as one of the oldest manufacturing industries in the country and the second largest,
after agriculture, the textile industry employs both skilled and unskilled people. The industry
contributes over 10 percent of the total annual exports of the country which is likely to
increase under the new Goods and Services Tax (GST) regime. Though there are a few
disadvantages of the GST on the textile industry, it is safe to say that it will help the sector in
the long run. It will get many registered taxpayers under a well-maintained system. It can
also be said that the new tax regime will help the textile industry expand itself in both the
domestic as well as global markets thereby creating sustainable and long-term growth
opportunities.

14. Madhukar N Hiregange (2017) The textiles and apparel industry in India accounts
forabout 10% of manufacture or production and 2% of India's Gross Domestic Product
(GDP) and constitutes about 13% of country's export earnings. 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 after understanding the impact. The Government is determined
to introduce GST from 1st July 2017. Paper writers feel that ideally 1st September 2017
looks fair considering that assesses should be given adequate time to transit to the new
regime.
Early preparation could provide lot of benefits including better transition planning.
Professionals need to highlight the importance and assist assesses in this regard especially the
SME sector.

15. (Urvashi gupta) GST will give India a world class charge framework by
amalgamating recent totally extraordinary medications to assembling and benefit part. Be that
as it may, this will be liable to its balanced style, convenient execution and customary
development. Henceforth, it can be reasoned that GST in the Indian structure will connect

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income spillages to current framework and at the same time will give help to citizen as far as
lessened duty trouble, end of falling impact and consistent stream of input credit on the vast
majority of the
items, notwithstanding releasing a flood of business benefits up to this point immaculate by the
VAT framework and would basically prompt Monetary Development.

3.2 Gap Analysis:

The study is about the impact of GST on textile industry and all the researchers have given
their view towards it and there are hardly any researchers who have studied about the impact
of GST in Ulhasnagar. So, the present research is aimed to eliminate this gap.

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CHAPTER 4
DATA ANALYSIS AND
INTERPRETATION

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1 AGE AND RESPONSES

AGE PERCENTAGE
Below 20 0%
Between 20-30 20%
Between 30-40 26.7%
Between 40-50 40%
Above 50 13.3%
TOTAL 100%

Graphical Representation

ANALYSIS

From the above Observation we observe that 20% of the people belong to the age group of 20 to 30
years, 26.7% belongs to the age group of 30-40, 40% belongs to the age group of 40-50, and 13.3%
belongs to the age group of above 50

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2. Income of Respondents

INCOME PERCENTAGE
0-150000 20%
150000-200000 33.33%
200000-500000 40%
Above 500000 6.7%
Total 100%

Graphical Representation

Analysis

From the above Observation 20% of the people belong to the income between 0-150000, 33.33%
people belong to the income between 150000-200000, 40% of the people belong to the income
between 200000-500000 and 6.7% of the people belong to the income above 500000

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3 NATURE OF BUSINESS OF RESPONSES

NATURE OF BUSINESS PERCENTAGE

Textile Mills 26.7%
Textile Product Mills 6.6%
Appareals Manufacturing 20%
Readymade Garments 46.7%
TOTAL 100%

GRAPHICAL REPRESENTATION

ANALYSIS

In the present study Textile Mills are 26.7%, Textile Product Mills are 6.6%, 20% of them are Appareals
Manufacturing and 46.7% are Readymade Garments

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4 SATISFIED WITH PRESENT GST SYSTEM

SATISFIED WITH PRESENT GST PERCENTAGE

YES 66.7%
NO 33.3%
100%
TOTAL

GRAPHICAL REPRESENTATION

ANALYSIS

In the present study, it is observed that majority of the people, that is 66.7% of the respondents are
satisfied with the present GST structure in India and the remaining 33.3% of the respondents are not

satisfied with the present GST structure in India

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5 Complications in Filing GST:

Complications in Filing GST: Precentage

YES 46.7%
NO 53.3%
TOTAL 100

G RAPHICAL REPRESENTATION

ANALYSIS

In the present study, it is observed that majority of the people, that is 46.7% of the respondents find
complications in filing GST and the remaining 53.3% of the respondents don't find any complications
in filing GST.

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6 GST has positive or negative impact in your business

Impact of GST PERCENTAGE

Positive 53.3%
Negative 46.7%
Total 100

GRAPHICAL REPRESENTATION

ANALYSIS

In the present study, it is observed that majority of the respondents, that is 53.3% of the investors find
positive change in their business and the remaining 46.7% of the respondents find negative change in
their business.

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7 Changes in Consumer Behaviour

Changes in Consumer Behaviour Percentage

Yes 53.5%
No 46.7%
Total 100

GRAPHICAL REPRESENTATION

ANALYSIS

In the present it is observed that 53.3% of the customer behaviour is changed and remaining 46.7% of
customer behaviour is not changed

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8 How does GST affects your annual sales?

Affects annual sales Percentage

Increase 6.7%
Decrease 46.7%
No change 46.6%
Total 100%

GRAPHICAL REPRESENTATION

ANALYSIS

In the present study, it is observed that due to GST, there is an increase in annual sales of 46.7% of the
respondents, decrease in sales of 46.7% of the respondents and the remaining 6.7% of the respondents
found no change in their business.

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9 Changes in the working pattern of the business

Changes in working pattern Percentage

Yes 66.7%
No 33.3%
Total 100%

GRAPHICAL REPRESENTATION

ANALYSIS

In the present study it is observed the due to GST 66.7% of the people observe the change in the
working pattern of their business and the remaining 33.3% does not see any change in there working
pattern of their business

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10 Support from Govt for understanding GST

Support from govt Percentage

Yes 66.7%
No 33.3%
Total 100%

GRAPHICAL REPRESENTATION

ANALYSIS

In the present study it is observed that 66.7% of the business agree that government help then with
understanding GST while remaining 33.3% of businessmen does not agree that government help then
while understanding GST

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11 Were you aware of GST before its implementation

Aware of GST Percentage

Yes 40%
No 26.7%
Little Bit 33.3%
Total 100%

GRAPHICAL REPRESENTATION

ANALYSIS

In the present study, out of 100 respondents, 40% of the respondents were aware of the GST
implementation, 26.7% of the respondents were not aware of the GST implementation and the
remaining 33.3%1 of the respondents were little bit aware about the GST implementation

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12 GST Process is time consuming and costly

Time consuming and costly Percentage

Yes 46.7%
No 53.5%
Total 100%

GRAPHICAL REPRESENTATION

ANALYSIS

In the present study, it is observed that majority of people that is 53.3% of the respondents does not
find GST as a time-consuming process and 45.1% of the respondents do find GST a time-consuming
process

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CHAPTER 5 CONCLUSION

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In the last one year, our country has witnessed historic and impactful economic reforms and policy
making. In fact, India was one of the very few economies undertaking transformational reforms. One of
the main reasons of such reforms is Goods services tax which is believed to be one of the major reforms
in Indian tax regime. GST is boosting competitiveness and performance in India’s manufacturing sector.
Declining exports and high infrastructure spending are just some of the concerns of this sector. Multiple
indirect taxes had also increased the administrative costs for manufacturers and distributors and with
GST in place, the compliance burden has eased and this sector will grow more strongly.

Indian industry considers the Goods and Services Tax (GST) a step in the right direction and a majority
are satisfied with its overall implementation, led to increased efficiency for businesses by reducing their
transportation time, on account of absence of state barriers etc. Returns and payment of tax is much
easier and simpler under the new regime. GST had a moderating impact on retail price inflation, which
may have risen to higher level without the new tax regime. After the implementation of GST many
positive reforms took place in India and that brought many positive changes in the business and GST
implementation satisfied many people.

There may be a few drawbacks for the textile industry due to the higher tax rate and removal of benefits
under cotton value chain. Some retail products currently have only four percent tax on them. After GST,
garments and clothes have become more expensive. Customers are not much satisfied with the new GST
because they are the ultimate tax bearers and goods have become more expensive for them. Consumers
are not much satisfied with the [Link] has also affected the exporters, the biggest concern is related
to the plan to let exporters pay the taxes and then get a refund after sending shipments. Sources said
despite red flags going up, the revenue department has refused to change its stance or work out an
alternative mechanism such as use of bank guarantees. There are some of the drawbacks in GST due to
which some people are not much satisfied due to its implementation. GST should bring a positive
outcome to the current Indian economy. It has been framed after taking many things into consideration,
which earlier caused much compliance in carrying out business. This In the last one year, our country
has witnessed historic and impactful economic reforms and policy making.

In fact, India was one of the very few economies undertaking transformational reforms. One of the main
reasons of such reforms is Goods services tax which is believed to be one of the major reforms in
Indian tax regime. GST is boosting competitiveness and performance in India’s manufacturing sector.
Declining exports and high infrastructure spending are just some of the concerns of this sector. Multiple
indirect taxes had also increased the administrative costs for manufacturers and distributors and with
GST in place, the compliance burden has eased and this sector will grow more strongly. Indian industry
considers the Goods and Services Tax (GST) a step in the right direction and a majority are satisfied
with its overall implementation, led to increased efficiency for businesses by reducing their
transportation time, on account of absence of state barriers etc. Returns and payment of tax is much
easier and simpler under the new regime. GST had a moderating impact on retail price inflation, which
may have risen to higher level without the new tax regime. After the implementation of GST many
positive reforms took place in India and that brought many positive changes in the business and GST
implementation satisfied many people. There may be a few drawbacks for the textile industry due to the
higher tax rate and removal of benefits under cotton value chain. Some retail products currently have

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only four percent tax on them. After GST, garments and clothes have become more expensive.
Customers are not much satisfied with the new GST because they are the ultimate tax bearers and goods
have become more expensive for them. Consumers are not much satisfied with the [Link] has also
affected the exporters, the biggest concern is related to the plan to let exporters pay the taxes and then
get a refund after sending shipments. Sources said despite red flags going up, the revenue department
has refused to change its stance or work out an alternative mechanism such as use of bank guarantees.
There are some of the drawbacks in GST due to which some people are not much satisfied due to its
implementation.

GST should bring a positive outcome to the current Indian economy. It has been framed after taking
many things into consideration, which earlier caused much compliance in carrying out business. This to
the leakage of money and increase in corruption. But, after the introduction of the GST system most of
the records and working will be transparent and watched over by the government. In the long-term, GST
would be simplified even more. Globally, countries that have benefitted from GST implementation
typically deploy two- or three- rates, as compared to the five-rate structure in India. As the cascading
effect disappears, inflation will reduce, thus leading to a positive consumer outlook. As the tax revenue
rises, the fiscal deficit would improve.

The international business community has welcomed this changing landscape of Indian business, and
noted that the GST has helped improve the ease of doing business in India. This is expected to attract
more FDI investments and help growth in exports. Another positive impact of GST on the textile industry
is the increase in competitiveness of Indian textile products in the global market. With the removal of
cascading taxes, input tax credit, and a common market, the cost of production for textile products has
decreased. This has made Indian textile products more competitive in terms of price and quality, leading
to an increase in exports and foreign exchange earnings. Furthermore, the implementation of GST has
led to the formalization of the textile industry by bringing several unorganized players under the tax net.
This has not only increased tax revenue for the government but also provided a level playing field for
businesses. The formalization of the industry has also led to the adoption of better business practices,
increased compliance, and improved working conditions for workers.

Moreover, the implementation of GST has resulted in the digitization of the tax system, leading to
increased efficiency and transparency. The use of a common IT infrastructure has made it easier for
businesses to comply with tax regulations and for the government to monitor tax transactions. This has
also reduced the scope of tax evasion and corruption, making the tax system more transparent and
accountable. In conclusion, the implementation of GST in the textile industry in India has had both
positive and negative impacts. While the challenges faced by the industry under GST are significant, the
long term benefits of a unified and simplified tax regime are expected to outweigh the short-term
difficulties. With continued efforts to address the challenges faced by the industry and ensure its smooth
transition to the new tax regime, the textile industry is expected to thrive under GST in the long run,
resulting in increased competitiveness, formalization, and digitization of the industry.

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BIBLIOGRAPHY

[Link]
• [Link]
• [Link]
• [Link]
• [Link]

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ANNEXURE

1Name: ______________

2 Age?

Below 20
Between 20-30
Between 30-40
Between 40-50
Above 50

4. Income

o 0 -150000

o 150000-200000

o 200000-500000

o Above 500000

5. Qualification _________________

6. Nature of Business
o Textile mills
o Textile product mill

• Appareals manufacturing
o Readymade Garments
o Other ________

7. Are you satisfied with present GST system? o Yes o No

8. Do you face any complications in filing GST return?

o Yes
o No

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9. Does GST has positive or negative impact on your business?

Positive
Negative

10. Are there any changes in working pattern of your business?

a Yes
b No

11. How GST affects your annual sales?

Increases
Decreases

No change

12. Is there any change in behaviour of customer?

a Yes
b o No

13. Did you get any support from government for understanding GST?

o Yes

o No

14. Were you aware of GST before its implementation?

o Yes
o No
o Little bit

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15. Do you think GST process is more time consuming and costly?
o Yes

o No

16. Suggestion if any ___________________

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