An Impact of GST on Textile Sector A Study of Mewar Region of Rajasthan

Abstract

In India the GST reform has totally transformed the indirect tax system by newlinecombining the majority of taxes on goods and services levied on traders newlinemanufacturers and the sale and consumption of products and services under a newlinesingle tax umbrella newlineThe ultimate goal of combining multiple indirect taxes into a single tax area under newlinethe GST regime is to give users with transparency and ease while also assisting newlinethe Indian economy s growth The majority of suppliers and retailers continue to newlineexpress their refusal to register for GST in order to escape the burden of new laws newlineand higher accounting costs associated with GST Small scale traders newlinemanufacturers and wholesalers appear to be unhappy with the GST because they newlinebelieve the tax rates are too high and they are unwilling to comply It has also newlinebeen stated that small and medium sized businesses are still unsure about the newlinetransition from the previous tax system to GST and billing newlineThe Goods and Services Tax GST is a major taxing policy designed to boost newlineeconomic growth and eliminate the cascading consequences of the current tax newlinestructure It is a multi stage destination based indirect tax that will be charged on newlineevery value addition It is a tax system that will combine all indirect taxes levied newlineby state and federal governments as well as the entire economy into a single newlinenation in the national market This is the most significant tax reform proposal in newlineour country s post independence history The textile industry in Rajasthan is one newlineof the country s oldest In the textile business there is uncertainty or a lack of newlineclarification about the input tax credit The overall impact of GST on the Rajasthan Bhilwara textile industry has newlineelicited positive responses from traders and producers however more newlineinvolvement and collaboration between the state and central governments as well newlineas the textile industry is required to identify actions or measures that could be newlinetaken to improve traders attitudes toward GSTUsing a qualitative and newlinequantitative methodology we show how GST affects the tex