Sourav Final

PROJECT REPORT
ON
“GST IMPACT ON TEXTILE INDUSTRY”
Work carried out at

BALLARI
Submitted in partial fulfillment of the requirement for the award of
Bachelor of Commerce
Of
VSKU, Ballari
By
SOURAV BOTHRA
C1914105
Under the able guidance of
Mr. Manohar Babu G MBA, M.com, PGDTM
Assistant Professor, Dept of Commerce
SHREE MEDHA DEGREE COLLEGE, BALLARI
SHREE MEDHA DEGREE COLLEGE, BALLARI.
DEPARTMENT OF COMMERCE
Certified that the project work entitled “GST IMPACT ON TEXTILE

INDUSTRY” is a bonafide work carried out by SOURAV BOTHRA in partial
fulfillment of the requirement for the award of the degree of Bachelor of
Commerce in VSKU, Ballari during the year 2022
The project report has been approved as it satisfies the academic requirements in
respect of project work prescribed for the Bachelor of Commerce Degree.
Signature of the Guide Signature of the HOD Signature of the Principal

DECLARATION
I hereby declare that this project work titled “GST IMPACT ON TEXTILE
INDUSTRY” is a record of Original work done by me under the guidance of Mr.
Manohar Babu G and that this project work has not formed the basis for the
award of any Degree/Diploma/Associate ship/Fellowship or similar title to any
candidate of any University.
Signature
SOURAV BOTHRA
Reg No C1914105
Cell: 9743484348
SHARAN PATIL & Co., Plot No.27,
CHARTERED ACCOUNTANTS
Maskimallikarjuna Nilaya
Email Id- sharanpatil78@gmail.com Talur Road,Ballari-583101
CERTIFICATE
This is to certify that Mr. SOURAV BOTHRA of Shree
Medha Degree College, Ballari, bearing REG NO -
C1914105 has completed a project report titled “GST
IMPACT ON TEXTILE INDUSTRY” from 04/06/2022
to 09/08/2022 in the subject of Taxation. During this
period, he successfully completed the work taken up by
him. He has been sincere, hardworking and punctual in his
work. I wish good and prosperous career.
Signature
ACKNOWLEDGEMENT
I would like to express my sincere thanks to Mr. Manohar Babu G for his/her
valuable guidance and support in completing my project.
I would also like to express my gratitude towards our principal Mr. K RAM
KIRAN for giving me this great opportunity to do a project on “GST IMPACT
ON TEXTILE INDUSTRY”. Without their support and suggestions, this project
would not have been completed.
SOURAV BOTHRA
Signature
TABLE OF CONTENT
S. CHAPTERS Page
No No:
1. INTRODUCTION 1
1.1 Abstract 2
1.2 Industry/Company Profile 2
1.3 Regional Profile 2-5
2. THEORETICAL BACKDROP 6
2.1 Meaning/Definition 7-9
2.2 Types/Objectives 9-10
2.3 Merits/De-Merits 11-12
3. RESEARCH METHODOLOGY 13
3.1 Statement of the Problem 14
3.2 Objectives of the Study 15-16
3.3 Scope of the study 16-17
3.4 Limitations of the study 17-20
3.5 Research Design
3.5.1 Data Collection 20-29
3.5.2 Statistical Tool 29-30
3.5.3 Data Tabulation 31-32
4. DATA ANALYSIS AND INTERPRETATION 33-39
5. FINDINGS, SUGGESTIONS AND CONCLUSION 40-44
5.1 Findings 41
5.2 Suggestions 41-42
5.3 Conclusion 42
BIBLIOGRAPHY/REFERENCES 43
ANNEXURE -
A STUDY ON IMPACT OF GST IN TEXTILE INDUSTRY
CHAPTER-1
INTRODUCTION
SHREE MEDHA DEGREE COLLEGE Page | 1

1.1 ABSTRACT:
The aim of this project is to check influence of GST on textiles and
wear market of republic of India.
METHODOLOGY: The analysis used for this study was descriptive methodology
wherever secondary knowledge was collected and web site for impact of GST on textiles, to
create sense of the expertise from completely different views. The analysis income as a
secondary table involves the inquiry of a development in its actual context by referring
knowledge from numerous sources, observation of the channels by the researches along with
theoretical knowledge from third party data base, specifically websites.
1.2 INDUSTRY PROFILE :
A textiles is the largest single industry in India (and amongst the world) accounting for
about 20 % of the total industrial production. It provides direct employment to around 20
million people’s textiles and clothing exports account for one – third of the total value of
exports from the country. There are 1227 textiles mills with a spinning capacity of about 29
million spindles. While yarn is mostly produced in the mills. Fabrics are produced in the
power loom and handloom sectors as well. The Indian textiles industry continues to be
predominatly based on cotton with about 65 % of raw material consumed being cotton. The
yearly output of cotton is about 12.8 billion tons Textiles is one of the oldest industries and
also contributes to about 14 % of manufacturing value addition, accounts around one-third of
of our gross export earning and also provides gainful employment to the millions of people.
They include cotton and jute grower’s artisans and weaves who are engaged in the organised
as well as decentralised and household sectors spread across the entire country.
1.3 REGION PROFILE:

History of Ballari:
Ballari district name is taken from the word "Ballari" which
refers to goddess Durgamma as this goddess had marijested herself in the town.
Some of the events in the great epic Ramayana are related to this historical
place. It is said that Rama while searching for Sita met Sugreeva and Hanuman
at a place which is near to Hampi, and history speaks volume about significant

role it aquaria during Satavahanas, Kadambas, Hoysalas period. It also
encouraged art, literature. Ballari is also known as "IRON LAND CITY".
Location
Ballari district is spread from south west to north east is situated on the
eastern site of Karnataka state. The district is situated between and north
latitude and east longitude, this district is bounded by Raichur district on the
north by Koppal district on the west Chitradurga and Davanagere district on the
south and Ananthapur, Kurnool district of Andhra Pradesh on cast, and in 2021
Vijayanagara district was separated from Ballari officially. It comes under the
administrative control of Gulbarga division and development jurisdiction of
H.K.D.B GULBARGA.
The Ballari district has an area of 8450 square kilometer, which is the fourth largest district in
the state.
Population:
In 2011, Ballari had population of 2,452,595 of which male and female were
1,236,954 and 1.215,641 respectively. An official census 2011 detail of Ballari, a district of
Karnataka has been released by directorate of census operations in Kamataka. Enumeration
of key persons was also done by census officials in Ballari district of Karnataka.
Literacy:
Education is a passport to accelerated economic growth and many schools and
other higher education institutions is providing very good facilities in the district. The cover
incurred towards building up of infrastructure facilities in education institution, the education
index stand at 16" rank among best while 20 district the literacy rates as estimated 63% the
continuing education programme project of RS 6,50,000 has been submitted to the
government of India for approval the posts demand certain basic technique, knowledge for
which the present educational institutional needs to be increased.

Market:
Ballari city is an important centre from which all business activities radiate not
only to different parts of the district, but also even operating at the international level to quote
e.g. export of iron ore, jeans and granites, other poly products this is so because the economic
factors are favourable both for agriculture and industry.
Ballari acts as marketing centre for agriculture goods and also to some extent capital goods.
The development of industries since independence prosperity of agriculture with the
emergence of Tungabhadra multipurpose project has undoubtedly enhanced the tempo of
economic activity and has further widened the scope of marketing activities.
Excellent available of jeans production has popularized market the important one in large
scale industries. The establishment of which indicate the development at great pace the iron
and steel industries are being established in Ballari district due to the availability of suitable
factors and above that abundant support from local government and public has given rise to
many industries.
Infrastructural Facilities
Ballari district has very good facilities like transportation, communication, banking,
insurance, education etc., which are essential perquisite, and for a successful market, it is
having 153 km national highway, state highway and sufficient district roads, railway with rest
of state favourable connect. It is also having the aerodrome facilities.
The modern systems of communication like internet, Fax, E-Business have boosted up the
trading activities of this market.
Top 10 players in textile industries:
 Arvind ltd
 Vardhman Textiles ltd
 Welspun India ltd
 Page Industries ltd
 Grasim Industries ltd (Aditya birla group )
 JCT ltd
 Lakshmi mills
 Raymond ltd
 Trident ltd
 Bombay rayon fashions

A STUDY ON IMPACT OF GST IN TEXT
EXTILE INDUSTRY
Market size:
Indian domestic
tic textile
tex and apparel market is estimated at US$ 75
7 billion in
2020-21. The market fell 30%
0% fro
from US$ 106 billion in 2019-20. The market
ket is expected to
recover and grow at 10% CAGR
GR ffrom 2019-20 to reach US$ 190 billion by 2025-26.
2025 Apparel
constitutes ~73% share of the total
to T&A market in India. India's textilee industry,
indu which
employs 100 million workers
rs is th
the second largest to generate employment opport
opportunities.
Process:
Step 1: Thread and lycra (o) is collected
Step 2: producing off yarn is done
Step 3: later yarn is put to dying
Step 4: usage of chemical
emical treatment is done here
Step 5: Fabric is fully
lly ma
made for usage purpose
(NOTE: Wastage iss remo
removed in every stage)
SHREE MEDHA DEGREE COLLEGEE Page | 5

CHAPTER- 2
THEORETICAL
BACKDROP

2.1: MEANING OF GST:
The Central Government passed the GST law in

Parliament on March 29, 2017. GST is levied on the supply of goods and
services which are taxable under GST. The GST is a consumption-based tax
charged by the Centre that has to be paid by every consumer in the supply
chain. Moreover, under the GST, a supplier can claim Input Tax Credit (ITC) to
set off the output liability. The tax collected is forwarded to the Central
Government, who then utilize this source of revenue for the development and
administration of the nation.
Meaning of Global GST:
GST full form is Goods and Service Tax. Several

countries worldwide have been actively adopting the GST regime. The first
country to implement GST was France in 1954. Today, about 160 countries
have embraced the idea of GST. These include the United Kingdom, Canada,
Australia, Vietnam, Singapore, Spain, Brazil, Italy, Nigeria and South Korea.
Most countries refer to it as the VAT (Value Added Tax). Globally, the GST
has been adopted as a unified taxation system. One can conclude that the tax
rates are charged uniformly on various goods and services throughout the
country. GST acts as a merger or unification of the central and state taxation
systems to be collected as a single tax. This overcomes the issue of
overcharging in certain conditions and eradicates taxes’ cascading effect and
enhances public participation and reliance.
Why has GST been implemented in India?
The central idea behind introducing GST was “One Nation One Tax”. Before
the introduction of GST in India, there were different types of indirect taxes.
Some of them were:

 VAT (Value Added Tax)
 Luxury Tax
 Central Tax; and so forth
Features of Goods and Services Tax:
 GST levies on the supply of goods and services as against the

previous concept of taxes on the Manufacture of goods or sale of
goods or provision of services.
 It is based on the principle of destination based consumption tax.
 Import of goods and services would be treated as interstate
supplies and came under IGST.
 CGST, IGST, UTGST/ SGST rates are mutually decided by the
centre and state under the aegis of GSTC (Goods and Service Tax
Council).
 GST levies on all goods and services except Alcohol for human
consumption.
 GST rates are 5%, 12%, 18%, 28%.
 On rough diamonds, 0.25% rate is applicable.
 GST rate on pearls, precious or semi-precious stones, diamonds
(other than rough diamonds), Precious metals (like gold and
silver), imitation jewellery, coins – 3%
 Taxpayers with an annual turnover of 20 lakhs ( 10 lakhs for
Jammu & Kashmir) is exempted from
GST
 A Composition levy scheme is available to small taxpayers
having an annual turnover of 1 crore. (75lakhs for special
category states except for J&K and Uttarakhand).
 Various modes of payment of taxes are available for taxpayers
like Debit/ Credit card, NEFT and RTGS.

EXTILE INDUSTRY
IMPACT OF GST
ST ON INDIAN ECONOMY:
In the middle of economic

mic crisis
cr across the world, GST has been
en introduced
intr to
foster the economic growth
rowth of the economy. The Government
nt has launched
various plans like Make in India, Digital India etc. To makee these
thes plans a
success a better taxationn syste
system was needed. So GST has been implemented.
imple It
is a long a waited tax reform since independence. It is a unifiedd single
sing tax rate
that has replaced the complica
mplicated taxation structure. Since its impleme
plementation, it
is influencing the various
us sections
sec of Indian economy. Indian econom
conomy consists
of three main sections.
2.2: TYPES:
OBJECTIVES:
 To achieve the ideology

eology of “ one nation ,one tax “
 To subsume a majority
ajority of the indirect tax in India
 To eliminate the casca
cascading effect of taxes
 To curb tax evasion
 To increase the taxpaye
axpayer base
EXTILE INDUSTRY
 Online procedure for eease of doing business
 To improve logistics
tics and
an distribution system
 To promote competitiv
petitive pricing and to increase in consumption
ption

2.3: Merits:
 GST is a transparent tax and also reduces the number of indirect taxes.
 GST will not be a cost to registered retailers therefore there will be no hidden taxes
and the cost of doing business will be lower.
 Benefit people as prices will come down which in turn will help companies as
consumption will increase.
 There is no doubt that in the production and distribution of goods, services are
increasingly used or consumed and vice versa.
 Separate taxes for goods and services, which is the present taxation system, requires
division of transaction values into value of goods and services for taxation, leading to
greater complications, administration, including compliances costs.
 In the GST system, when all the taxes are integrated, it would make possible the
taxation burden to be split equitably between manufacturing and services.
 GST will be levied only at the final destination of consumption based on the VAT
principle and not at various points (from manufacturing to retail outlets). This will
help in removing economic distortions and bring about development of a common
national market.
 GST will also help to build a transparent and corruption-free tax administration.
 Presently, a tax is levied on when a finished product moves out from a factory, which
is paid by the manufacturer, and it is again levied at the retail outlet when sold.
 GST is backed by the GSTN, which is a fully integrated tax platform to deal with all
aspects of GST.
De-Merits:
 Some Economist says that GST in India would impact negatively on the real estate
market. It would add up to 8 present to the cost of new homes and reduce demand by
about 12 %.
 Some Experts says that 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 a four present tax on them. After GST,
garments, and clothes could become more expensive.

EXTILE INDUSTRY
 The aviation industry
ry wou
would be affected. Service taxes on airfares
es currently
curr range
from six to nine present
resent. With GST, this rate will surpass fifteen
fteen present and
effectively double thee tax rate.
r
 Adoption and migration
tion to the new GST system would involve teething
thing troubles
t and
learning for the entiree ecosystem.
ecos

CHAPTER-3
RESEARCH
METHODOLOGY

3.1: STATEMENTS OF PROBLEMS:
A statement of problem refers to the critical issue that your research seeks
to address. In other words, it captures the existing knowledge gap that your study aims to
bridge using reliable results or outcomes. A problem statement can be as little as a few
sentences or go all the way to several paragraphs—what matters is it communicates the
central focus of your study.
As your study bridges this gap, it also leaves room for future investigations. The implication
is that your problem statement should not be too broad; instead, it should address one specific
issue and contribute to the knowledge pool for further research.
WHY IS A PROBLEM STATEMENT IMPORTANT IN

RESEARCH WRITING?
Writing a good problem statement serves both the researcher and the readers. For the
researcher, the problem statement helps you visualize the scope of your project and outline it
accordingly. Also, it allows you to map out specific aims and objectives for your study.
On the flip side, the problem statement helps the reader identify the core reason for your
research and see how your work fits into the existing body of knowledge. It helps them get on
the same page as you regarding the importance and significance of your systematic
investigation.
If you require funding for your research, a problem statement can help potential financiers to
see why investing in your project is the right move to make. It gives them an overview of the
existing problem, your solution, and the impact of your solution on the field of study.
Elements and Structure of a Problem Statement:

In its most basic form, a problem statement comprises three elements which are:
 The research problem
 The claim or working thesis
 The significance of the study
In other words, it tells the reader what you're trying to solve, how you plan to
solve it, and why you want to solve it.

3.2: OBJECTIVE OF STUDY:
Research objectives are the outcomes that I have aim to achieve

by conducting research. Many research projects contain more than one research
objective. Creating strong research objectives can help for organization
achieve its overall goals. The purpose of research objectives is to drive the
research project, including data collection, analysis and conclusions. Research
objectives also help me narrow in on the focus of my research and key
variables, guiding you through the research process.
1. Pinpoint the major focus of your research:

The first step to writing in my research objectives is to
pinpoint the major focus of my research project. In this step, make sure to
clearly describe what I’m aim to achieve through my research. You can identify
a research focus by reading through my industry's literature and finding gaps in
existing research. Once you find a gap that you can fill through your research
project, you can start narrowing down a focus for my research project and
setting an overall goal that you want to achieve through my research process.
2. Break down research focus into research objectives:

Once you know the primary goal of my research project,
you can break it down into smaller steps and separate my objectives. You can
choose one general objective and a few other specific, narrow objectives. In the
general objective, state in a broad sense what you aim to achieve through your
research. Then, use the specific objectives to describe how you can achieve your
general goal.

3. My research objectives in the SMART format:
Another key step to writing strong research objectives is to use the SMART
format. Using this format can make my objectives clearer and easier to
understand, which can make you more likely to achieve them. Make sure your
objectives meet these criteria:
 Specific: Be specific about my desired outcomes. My objective is
 learly written and leave no room for confusion. This can help me to keep
them narrow and focused.
 Measurable: Making my objectives measurable is essential to
achieving them. I can create metrics to measure your progress toward
achieving my objectives.
 Achievable: Being a sure to create objectives that I can realistically
achieve to help to avoid getting overwhelmed by unrealistic expectations.
Make sure I have the resources and budget to accomplish your objectives.
 Relevant: Making my objectives relevant to my research and my
overall goals. This can help me to stay motivated and on track throughout
your research project.
 Time-based: I can establish 30 days of deadlines to help me keep my
research process on track. I can set a major deadline for my entire project
as well as smaller deadlines for each objective.
3.3: SCOPE OF STUDY:

The scope of a study explains the extent to which the
research area will be explored in the work and specifies the parameters within
the study will be operating. Basically, this means that you will have to define
what the study is going to cover and what it is focusing on. Similarly, you also
have to define what the study is not going to cover. This will come under the
limitations. Generally, the scope of a research paper is followed by its
limitations.
As a researcher, you have to be careful when you define your scope or area of
focus. Remember that if you broaden the scope too much, you might not be able
to do justice to the work or it might take a very long time to complete. Consider
the feasibility of your work before you write down the scope. Again, if the
scope is too narrow, the findings might not be generalizable.
Typically, the information that you need to include in the scope would cover the
following:
1. General purpose of the study
2. The population or sample that you are studying
3. The duration of the study
4. The topics or theories that you will discuss
5. The geographical location covered in the study
3.4: LIMITATION OF STUDY:
The limitations of a study are its flaws or shortcomings.

Study limitations can exist due to constraints on research design, methodology,
materials, etc., and these factors may impact the findings of your study.
However, researchers are often reluctant to discuss the limitations of their study
in their papers, feeling that bringing up limitations may undermine its research
value in the eyes of readers and reviewers.
In spite of the impact it might have (and perhaps because of it) you should
clearly acknowledge any limitations in your research paper in order to show
readers—whether journal editors, other researchers, or the general public—that
you are aware of these limitations and to explain how they affect the
conclusions that can be drawn from the research.

In this article, we provide some guidelines for writing about research
limitations, show examples of some frequently seen study limitations, and
recommend techniques for presenting this information. And after you have
finished drafting and revising your research paper manuscript, you still might
want to follow this up with academic editing before submitting your work to
your target journal.
 Data is collected in confined period of 30 days

 Data is collected by the source of secondary form
 Data is restricted by the available source of collection
 Data is limited
Why do I need to include limitations of research?
Although limitations address the potential weaknesses of a study, writing about

them towards the end of your paper actually strengthens your study by
identifying any problems before other researchers or reviewers find them.
Furthermore, pointing out study limitations shows that you’ve considered the
impact of research weakness thoroughly and have an in-depth understanding of
your research topic. Since all studies face limitations, being honest and detailing
these limitations will impress researchers and reviewers more than ignoring
them.
3.5: RESEARCH DESIGN:
The research design refers to the overall strategy that

you choose to integrate the different components of the study in a coherent and
logical way, thereby, ensuring you will effectively address the research
problem; it constitutes the blueprint for the collection, measurement, and
analysis of data.
The function of a research design is to ensure that the evidence obtained

enables you to effectively address the research problem logically and as
unambiguously as possible. In social sciences research, obtaining information
relevant to the research problem generally entails specifying the type of
evidence needed to test a theory, to evaluate a program, or to accurately
describe and assess meaning related to an observable phenomenon.
With this in mind, a common mistake made by researchers is that they begin
their investigations far too early, before they have thought critically about what
information is required to address the research problem. Without attending to
these design issues beforehand, the overall research problem will not be
adequately addressed and any conclusions drawn will run the risk of being weak
and unconvincing. As a consequence, the overall validity of the study will be
undermined.
The length and complexity of describing research designs

in your paper can vary considerably, but any well-
developed description will achieve the following:
 Identify the research problem clearly and justify its selection, particularly
in relation to any valid alternative designs that could have been used,
 Review and synthesize previously published literature associated with the
research problem,
 Clearly and explicitly specify hypotheses [i.e., research questions] central
to the problem,
 Effectively describe the information and/or data which will be necessary
for an adequate testing of the hypotheses and explain how such
information and/or data will be obtained, and
 Describe the methods of analysis to be applied to the data in determining
whether or not the hypotheses are true or false.

The research design is usually incorporated into the introduction. You can get
an overall sense of what to do by reviewing the literature of studies that have
utilized the same research design. This can provide help you develop an outline
to follow for your own paper.
3.5.1: DATA COLLECTION:
Modern manufacturing facilities are data-rich environments

that support the transmission, sharing and analysis of information across
ubiquitous networks to produce manufacturing intelligence. The potential
benefits of manufacturing intelligence include improvements in operational
efficiency, process innovation, and environmental impact, to name a few.
However, similar to other industries and domains, the current information
systems that support business and manufacturing intelligence are being tasked
with the responsibility of storing increasingly large data sets (i.e. Big Data), as
well as associate the real-time processing of this ‘Big Data’ using advanced
analytics. The predicted exponential growth in data production will be a result
of an increase in the number of instruments that record measurements from
physical environments and processes, as well as an increase in the frequency at
which these devices record and persists measurements. The technologies that
transmit this raw data will include legacy automation and sensor networks, in
addition to new and emerging paradigms, such as the Internet of Things (IoT)
and Cyber Physical Systems (CPS) and Artificial Intelligence (AI). The low-
level granular data captured by these technologies can be consumed by analytics
and modelling applications to enable manufacturers to develop a better
understanding of their activities and processes to derive insights that can
improve existing operations. Big data, as the name suggests, is an enormous
amount of data. It can be defined by the 4V’s – Volume, Velocity, Variety, and
Veracity. This 4V’s are responsible for complete functioning and analysis of
data to obtain required output. The ability to analyse this enormous amount of
data is known as big data analytics. The analysis of big data makes valuable
conclusions by converting the data into statistics, that otherwise could not be
exposed using less data and old-style methods.
Textile:
All the data associated with a textile product is hence called as textile data. This
data can have used for trend analysis, customer behaviour analysis, forecasting
etc. Textile industry generates and creates various sources of data. All these data
come in various forms like words, images etc. Since it is the era of fast textile,
the data is rapidly growing and changing. Hence, this data can be termed as
fabric big it portrays all the features of big data. Following is a broad
classification of the textile data –
i. Material: This includes the fabric that is used to make a textile product. The
fabric has various characteristics like yarn type, yarn count, yarn twist, weft &
warp density, weave structure etc. To achieve different types of fabric, one or
more of these are changed. This enormously changes the appearance and had of
the fabric, which correlate to emotions, textile themes, colors etc.
ii. Textile Design: It is the knowledge about the elements & principles of
design, which combined together, gives the design of a textile product. The
design of a product is mostly influenced by human emotions, textile themes,
occasion of wear etc.
iii. Body Data: The body data can be in the form 2D or 3D data. For 2D, it is
collected using the conventional method of body measurement. For 3D, it is
collected 3D body scanners. These data can provide information like body
measurement & body type.
iv. Colour: Color preference is an important aspect that influences a gamut of

human behaviour. Kobayashi’s color image scale states that color can have

three attributes – warm or cool, soft or hard, clear or grayish, which associate
with hue, Chroma & value. These attributes can be linked with the emotion
v. Technical/Production design: The technical design allows the producer

to understand that how the product will be made. This makes the design of a
product production friendly. It includes knowledge of pattern making, sewing
etc. To extract knowledge from these data, they have to be linked together. The
next section describes the proposed system that will use this data.
Fabrics and Apparel Industry represented against this revision of GST slab from
5% to 12%
. This Ministry under the able leadership of Shri Piyush

Goyal, Hon’ble Minister for Textiles, Smt. Darshana Jardosh, and Humble
Minister of State for Textiles arranged meeting of a delegation of textiles
industry and trade representatives with Hon’ble FM regarding the concerns of
textiles industries. After persuasion of HMoST, the GST Council’s 46th
meeting was held today under the chairpersonship of the Union Finance &

Corporate Affairs Minister Smt. Nirmala Sitharaman. The GST Council has
recommended deferring the earlier decision to change the rates in textiles
recommended in the 45th GST Council meeting. Consequently, the existing
rates in textile sector would continue beyond 1st January, 2022. Ministry of
Textiles expresses its hearty thanks and is grateful to Humble Prime Minister
and Union Finance & Corporate Affairs Minister for considering the requests of
industry stakeholders especially in present challenging times when the sector is
on the path of recovery.

GST rates applicable on textile:
SGST CGST IGST

2.5 % 2.5% 5%
What are GST rates?
Various GST rates have been defined to enhance transparency and trust between
the customers and sellers in the taxation process. Each of these slabs includes
different categories of items depending on certain parameters.
These rates are decided by the GST Council. This Council revises the rate slab
of goods and services periodically. The GST rates are usually high for luxury
supplies and low for essential needs. In India GST rate for various goods and
services is divided into four slabs: they are 5% GST, 12% GST, 18% GST, &
28% GST
HSN CODE:
COTTON COMPOSITION HSN CODE

MORE 85% COTTON CONTENT & 5208
WEIGHT IS LESS THAN 200 GM
MORE THAN 85% COTTON CONTENT 5209
& WEIGHT IS GREATER THAN 200 GM
LESS THAN 85% COTTON CONTENT , 5210
MIXED WITH ADDITIONAL FABRICS
BUT WEIGHT IS LESS THAN 200 GM
LESS THAN 85% COTTON CONTENT , 5211
MIXED WITH ADDITIONAL FABRICS
BUT WEIGHT IS GREATER THAN 200
GM
OTHER COTTON PRODUCTS 5212

YARD HSN CODE:
YARN SPECIFICATION HSN CODE

SYNTHETIC MONO FILAMENT OF 67 5407
DECITEX OR MORE & WHICH NO CROSS
SECTIONAL DIMENSSION EXCEED 1MM
; STRIPS & THE LIKE OF SYNTHETIC
TEXTILES MATERIAL OF AN APPARENT
WIDTH NOT EXCEEDING 5MM
ARTIFICIAL MONO FILAMENT OF 67 5408
DECITEX OR MORE AND OF WHICH NO
CROSS SECTIONAL DIMENSION EXCEED
1MM ; STRIPS & THE LIKE OF
SYNTHETIC TEXTILES MATERIAL OF AN
APPARENT WIDTH NOT EXCEDDING
5MM
What is an HSN code?
The HSN code is a globally standardised tariff nomenclature for goods, issued
by the World Customs Organization (WCO). Unique to each traded product, an
HSN code is organised by economic activity or component material. The HSN
code enables 200 members of the WCO to maintain a global database of goods.
The WCO, an independent inter-governmental organisation, periodically
updates the HSN codes according to the changing nature of global trade.
Classifying and regulating global trade since 1988, HSN codes are
changed at regular intervals to broaden their scope. HSN 2022, for example,
will capture trade in a range of new fields. HSN 2022 is the seventh edition and
has become effective since January 1, 2022.
Digits in the HSN code:
The first six digits are universally accepted. In the digits added by the source country:

 The first two digits designate the HSN chapter
 The next two digits designate the HSN heading
 The last two digits designate the HSN subheading
EXAMPLE: HSN number: 590699 are of rubberised textile fabrics

which is taxable at the rate of 12%. Where first two digits refers i.e.
59 refers to chapter of HSN code, next two digit i.e. 06 refers to
heading of HSN code and subsequent last two digit refers i.e. 99 is
subheading of HSN code.
TYPES OF FABRICS IN TEXTILE INDUSTRY:
 Chiffon
 Cotton
 Crepe
 Denim
 Lace
 Leather
 Linen
 Satin
 Silk
 Synthetics
 Velvet
 Wool

EXTILE INDUSTRY
Production of fabric
abric:
Fabric
abric construction
c involves the conversion
on of yarns,
y and
sometimes fibres,, into a fabric having characteristics determin
termined by the
materials and methods
thods employed. Most fabrics are presently
tly produced
pro by
some method off inter
interlacing, such as weaving or knitting.
tting. Weaving,
currently the major
ajor method
m of fabric production includes
ludes the basic
weaves, plain or tabby
tabby, twill, and satin, and the fancy weaves,
eaves, including
pile, Jacquard, dobby,
obby, aand gauze. Knitted fabrics are rapidly
dly inc
increasing in
importance and include
nclude weft types and the warp types, raschel
schel and tricot.
Other interlaced fabric
fabrics include net, lace, and braid. Nonwov
nwoven fabrics
are gaining importance
ortance and include materials produced by felting
fe and
bonding. Laminating
ating pprocesses are also increasing in importance,
import and
fairly recent developm
velopments include needle weaving and
nd the sewing-
knitting process.

Suggestions:
1. Raw material bank: Yarn constitutes more than 60% of the overall cost
of handloom products. Typically major yarn spinners are not located within or
near the handloom clusters and they do not sell yarn directly to the
weaver/master weaver/cooperatives. There are a number of agents involved in
the process of delivering the yarn from mill to weaver, which increases the price
of yarn and sometimes creates artificial shortage of raw material availability,
which in turn increases the price of yarn. Development of raw material (yarn)
bank at a cluster level will not only ensure continuous supply of raw material
but will also help in reducing the price of yarn.
2. Supply of handloom parts at subsidized rate: Many times handloom

weavers can’t change the defective handloom parts due to its high price. This
reduces the efficiency level of the handloom weavers and also deteriorates the
quality of the products. Supply of handloom parts at subsidized rate will help
handloom weavers to improve their efficiency, which will help in reduction of
cost of production. Also, an improvement in quality will enable the handloom
weavers to charge a premium for their product.
3. Improved Dyeing facility: Colour fastness is the most common quality

problem with handloom products. Many consumers hesitate to purchase
handloom products due to this problem. Usage of age old dyeing facility is the
reason behind such quality problem. Installation of better dyeing technology at
cluster level will help in solving this quality issue, which will help in increasing
the demand of handloom products and its price as well.
4. Product & design development: Supporting handloom weavers in

product and design development will help them in reducing the cost of
manufacturing and developing higher value added products, which can be sold
with higher premium. This facility can be provided to handloom weavers

EXTILE INDUSTRY
through training or opening
ning facility
fa Centre at the cluster level. It is important
im to
mention here that Ministry
try of Textiles is implementing many such
ch interventions
inte
through different schemes.
3.5.2 : Statistical
al Tool
Too :


3.5.3 :Data Tubulation:
Particular Billing under Billing under

VAT GST regime
Total Bill 100000 100000
Output Tax
- VAT @ 14.5% 14500
-Service Tax@6% 6000
GST@5% 5000
Total Output tax 20500 5000
liability
Input Credit
-VAT ITC (no ITC 1000
on ST)
-GST ITC -
Final Output tax
liability
-VAT 12500
-Service tax 4500
-GST 4500
Interpretation:
Here there is a estimation figure are 1,00,000 is taken where

it has been derived that there is cut off of tax burden is case on GST for sure and

also in VAT there is not ITC available but GST has this feature for sure . so it is
derived that GST is better than VAT .

CHAPTER-4
DATA ANALYSIS
AND
INTERPRETATION

Data analysis:
India is the world’s second-largest producer of textiles and garments. It is also

the fifth-largest exporter of textiles spanning apparel, home and technical products. The
fundamental strength of the textile industry in India is its strong production base of a wide
range of fibre/yarns from natural fibres like cotton, jute, silk and wool to synthetic/man-made
fibres like polyester, viscose, nylon and acrylic.
The textiles and apparel industry contribute 2.3% to the country’s GDP, 13% to industrial
production and 12% to exports. Around 45 million people are working in the textile business,
including 3.5 million people who work on handlooms. The Indian textile and apparel industry
is expected to grow at 10% CAGR from 2019-20 to reach US$ 190 billion by 2025-26. The
Indian apparel market stood at US$ 40 billion in 2020 and is expected to reach US$ 135
billion by 2025.
India enjoys a comparative advantage in terms of skilled manpower and in cost of production
relative to other major textile producers. India’s textile and apparel exports (including
handicrafts) stood at US$ 44.4 billion in FY22, a 41% increase YoY. Exports of readymade
garments including cotton accessories stood at US$ 6.19 billion in FY22.
The textiles industry (including dyed and printed) attracted Foreign Direct Investment (FDI)
worth US$ 3.99 billion from April 2000-March 2022. 100% FDI (automatic route) is allowed
in the Indian textile sector.
Companies involved in home textiles are using technology to optimise the value chain. For
example, in October 2021, Welspun India introduced Wel-Trak 2.0—an upgraded, patented
end-to-end traceability technology—to track textile raw materials throughout the supply
chain.
The Government’s Rs.10,683 crore (US$ 1.44 billion) PLI scheme is expected to be a major
booster for the textile manufacturers. The scheme proposes to incentivise MMF (man-made
fibre) apparel, MMF fabrics and 10 segments of technical textiles products.
The Government approved the Mega Integrated Textile Region and Apparel (MITRA) Park
scheme worth Rs 4,445 crore (US$ 594.26 million) to establish seven integrated mega textile
parks with state-of-the-art infrastructure, common utilities and R&D lab over a three-year
period, which will boost textile manufacturing in the country.
For the export of handloom products globally, the Handloom Export Promotion Council
(HEPC) is participating in various international fairs/events with handloom
exporters/weavers to sell their handloom products in the international markets under the
National Handloom Development Programme (NHDP). Alongside, the Ministry of Textiles
has also been implementing Handloom Marketing Assistance (HMA), a component of the
National Handloom Development Programme (NHDP) all across India. HMA provides a
marketing platform to the handloom weavers/agencies to sell their products directly to the
consumers, and develop and promote the marketing channel through organizing expos/events
in domestic as well as export markets.
The government has allocated funds worth Rs.17,822 crore (US$ 2.38 billion) between
FY16-22 for the ‘Amended Technology Up-gradation Fund Scheme’ (A-TUFS) to boost the
Indian textile industry and enable ease of doing business.
To support the handloom weavers/weaver entrepreneurs, the Weaver MUDRA Scheme was
launched to provide margin money assistance at 20% of the loan amount subject to a
maximum of Rs.10,000 (US$ 134.22) per weaver. The loan is provided at an interest rate of
6% with credit guarantee of three years.
The new Economic Cooperation and Trade Agreements with Australia and the UAE will
open multiple opportunities for textiles and handloom. Indian textile exports to Australia and
the UAE will now face zero duties, and the government is expecting that soon, Europe,
Canada, the UK and GCC countries would also welcome Indian textile exports at zero duty.
Top players in the textiles sector are attaining sustainability in their products by
manufacturing textiles that use natural recyclable materials. Top players in the textiles sector
are attaining sustainability in their products by manufacturing textiles that use natural
recyclable materials.
Interpretation:
 Indian textile industry is among the oldest industries in the country dating back
several centuries. The industry contributes 7% to the total industry output and 2% to
the GDP. It also contributes 12% to export earnings and holds 5% of the global trade
in textiles and apparel.
 The Indian textiles industry is also the second largest contributor towards
employment generation, after agriculture, contributing 10% to the country’s
manufacturing, owing to its labour-intensive nature. India also enjoys a comparative
advantage in terms of skilled manpower and cost of production relative to major
textile producers.
 The Indian textile and apparel industry can be broadly divided into two segments
– yarn and fiber, and processed fabrics and apparel. The industry is extremely
varied, with the hand-spun and hand-woven textiles sectors at one end of the spectrum
and the capital intensive sophisticated mills sector at the other end of the spectrum.
The decentralized power looms/ hosiery and knitting sector form the largest
component of the textiles sector.
 The industry is also highly sensitive to the cotton market as over 70% of its
output is based on cotton - unlike globally where articles made of man-made fabrics
account for a larger share.
 India is the second largest producer and exporter of textiles after China and
fourth largest producer and exporter of apparel after China, Bangladesh and Vietnam.
Superior quality makes companies in India a leader in export- almost two-thirds of
India’s export of textiles is to US and UK.
 India is also a key growth market for the technical textiles sector due to the cost
effectiveness, durability and versatility of technical textiles. Technical textile
industries major service offerings include thermal protection and blood absorbing
materials, seatbelts and adhesive tapes. Healthcare and infrastructure sectors are the
major drivers of the technical textile industry.
 Increased penetration of organized retail, favourable demographics, and rising
income levels are likely to drive demand for textiles.
 In order to attract investment in the industry, the Government has introduced
various schemes such as the Technology Up-gradation Fund Scheme (TUFS) and
the Scheme for Integrated Textile Parks. Under Union Budget 2020-21, the
government of India has proposed a National Technical Textiles Mission for the
period FY21 to FY24 at an estimated outlay of Rs14.8 billion.
 100% FDI is allowed under the automatic route in the Indian textile sector. The
industry (including dyed and printed) attracted Foreign Direct Investment (FDI) worth
US$3.46 billion from April 2010 to September 2020.

RESEARCH ABOUT TEXTILES SECTOR:
 Supply
 Despite some pick-up in demand from both global and domestic markets, most new
capacities in the apparel and home textile segments are not operating at full capacities.
 Demand
 High for premium and branded products due to increasing per capita disposable income.
 Barriers to entry
 Superior technology, skilled and unskilled labour, distribution network, access to global
customers.
 Bargaining power of suppliers
 Low, as there is an excess of available suppliers giving them a weak bargaining power. In
addition, the suppliers lack switching costs and have a low level of product
differentiation.
 Bargaining power of customers
 Domestic customers - Low for premium and branded product segments. Global
customers- High due to presence of alternate low cost sourcing destinations.
 Competition
 High. Very fragmented industry. Competition from other low cost producing nations is
likely to intensify.
 Threat of Substitutes
 The Indian textile industry faces a threat from low cost producing countries like Pakistan
and Bangladesh (as labour cost is 50% cheaper)
PROSPECTS:
 The future for the Indian textiles industry looks promising, buoyed by strong
domestic consumption as well as export demand. With consumerism and disposable
income on the rise, the retail sector has experienced a rapid growth in the past decade.
 High economic growth has resulted in higher disposable income which has led to
a rise in demand for products creating a huge domestic market. Rising industrial
activity is expected to support the growth in per capita income.

 Increased penetration of organized retail is likely to drive demand for home
textiles whereas growth in building and construction is expected to drive demand for
non-clothing textiles.
 Opportunities in product and design innovations can help address the changing
preferences of young vibrant India. E-commerce is expected to lead the way for
growth.
 The Government plans to create Centres of Excellence (CoE) aimed at creating
testing and evaluation facilities as well as resource and training facilities for the
textile industry. The existing four CoEs would also be upgraded in terms of
development of incubation centres and would provide support for the development of
prototypes. Fund support would also be provided for appointing experts to develop
these facilities.
 The Central Silk Board has set targets for raw silk production. To achieve these
targets, alliances with the private sector especially major agro based industries in
pre cocoon and post cocoon segments are being encouraged.
 The Integrated Wool Development Programme (IWDP) was approved by
Government of India to provide support to the wool sector, starting from wool
rearer to end consumer, with an aim to enhance quality and increase
production. Under the Union Budget 2019-20, US$ 4.1 million was allocated to this
programme.
 The Ministry of Textiles has announced US$ 106.6 million for setting up 21
readymade garment manufacturing units in seven states for development and
modernization of Indian textile sector.
 The new textile policy aims to achieve US$ 300 billion worth in textile exports by
2024-25 and create an additional 35 million jobs. By 2022, the Indian textile sector
will require an additional 17 million work force.
 The Directorate General of Foreign Trade (DGFT) has also revised rates for
incentives under the Merchandise Exports from India Scheme (MEIS) for two
subsectors of Textiles Industry - readymade garments and made-ups - from 2% to 4%,
which will prove beneficial for the sector.
 The textile and apparel trade is predicted to grow at a CAGR of 3.7% during the
period 2018-28. During this period, the increase in apparel trade is expected to be at a
CAGR of 4.5% and textiles at a CAGR of 2.5%.

 The technical textile industry is expected to reach US$ 32 billion by FY23,
growing at a CAGR of 12.2% over FY18. The industry is supported by various
flagship schemes initiated by the Government to promote its full potential.

CHAPTER-5
FINDINGS,
SUGGESTION
AND
CONCLUSION

5.1 FINDINGS:
 70 % of registered persons are awaited about GST impact on textile

industries.
 Majority of people are getting benefit form GST ACT and it helps for
future growth to the textile industry.
 40% to 60% of respondent are replying about increase in sales after
implementation of GST ACT.
 Here after getting research majority of sources are indicating that GST
is better than VAT ACT.
 Through research majority of are accepting that procedure for
registration is a difficult process.
 Majority of people are getting benefits so they are responding to
continue of GST ACT.
 AS textiles is contribution majority of revenue to the nation as well as
service and contribution of employment.
 As GST is giving more tax benefits than VAT like availing of ITC.
5.2 SUGGESTION:
 Every registered person being accepted the GST acts are expecting the
rules to be in an easily understandable form.
 There should be created some awareness about GST ACT to the
customers.
 Registered person are awaited about the GST system but lack of
prominence about rules.
 Initially GST has left the negative impact in our economy.
 Due to decision of government to deploy tax bracket which has left some
discontent.
 Due to hike in price in raw material there should be postponement in
change in hike of GST rate.

 More subsidies should be provided to these industries to hike the export
to the nation.
5.3 CONCLUSION:
GST is helpful to avoid the tax on tax production

distribution chain of the business. By implementation of GST get many changes
in the tax system. GST system is an invoice matching by the way to ensure flow
of return in various parts of country. By the GST return is use common
language to filling the tax it so easy to understand in the country. GST increase
the paying of tax payer and also increase the revenue level of the country. Now
most of the textile industry is get awareness about GST.
In such a positive response we would definitely come

over all the odds our economy and be able to stand globally with in no time,
enabling every individual set their economic stability achieving their goals in
order to contribute to the objective of our nation.

BIBILOGRAPHY
 http://.cbec.gov.in/htdocs-cbec/gst
 https://www.mastersindia.co.gst
 https://www.profitbooks.net/goods-and-service-
tax-gst
 https://hindustantimes.com/business-news/gst-
5-things-that-make-the-tax-reforms-a-
 https://www.hrblock.in/blog/impact-gst-textile-
industry-2/
 http://gstibdia.com/about/
 https://www.siamindia.com/publications.aspx?
mpgid=42&pgidtrail=44

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PROJECT REPORT

Work carried out at

SHREE MEDHA DEGREE COLLEGE, BALLARI.

Certified that the project work entitled “GST IMPACT ON TEXTILE

Signature of the Guide Signature of the HOD Signature of the Principal

SHREE MEDHA DEGREE COLLEGE Page | 1

1.2 INDUSTRY PROFILE :

1.3 REGION PROFILE:

SHREE MEDHA DEGREE COLLEGE Page | 2

SHREE MEDHA DEGREE COLLEGE Page | 3

Top 10 players in textile industries:

SHREE MEDHA DEGREE COLLEGE Page | 4

SHREE MEDHA DEGREE COLLEGEE Page | 5

SHREE MEDHA DEGREE COLLEGE Page | 6

The Central Government passed the GST law in

Meaning of Global GST:

GST full form is Goods and Service Tax. Several

Why has GST been implemented in India?

SHREE MEDHA DEGREE COLLEGE Page | 7

Features of Goods and Services Tax:

 GST levies on the supply of goods and services as against the

SHREE MEDHA DEGREE COLLEGE Page | 8

In the middle of economic

 To achieve the ideology

SHREE MEDHA DEGREE COLLEGEE Page | 10

SHREE MEDHA DEGREE COLLEGE Page | 11

SHREE MEDHA DEGREE COLLEGEE Page | 12

SHREE MEDHA DEGREE COLLEGE Page | 13

WHY IS A PROBLEM STATEMENT IMPORTANT IN

Elements and Structure of a Problem Statement:

SHREE MEDHA DEGREE COLLEGE Page | 14

3.2: OBJECTIVE OF STUDY:

Research objectives are the outcomes that I have aim to achieve

1. Pinpoint the major focus of your research:

2. Break down research focus into research objectives:

SHREE MEDHA DEGREE COLLEGE Page | 15

3.3: SCOPE OF STUDY:

1. General purpose of the study

2. The population or sample that you are studying

3. The duration of the study

4. The topics or theories that you will discuss

5. The geographical location covered in the study

3.4: LIMITATION OF STUDY:

The limitations of a study are its flaws or shortcomings.

SHREE MEDHA DEGREE COLLEGE Page | 17

 Data is collected in confined period of 30 days

Why do I need to include limitations of research?

Although limitations address the potential weaknesses of a study, writing about

3.5: RESEARCH DESIGN:

The research design refers to the overall strategy that

The function of a research design is to ensure that the evidence obtained

The length and complexity of describing research designs

SHREE MEDHA DEGREE COLLEGE Page | 19

3.5.1: DATA COLLECTION:

Modern manufacturing facilities are data-rich environments

iv. Colour: Color preference is an important aspect that influences a gamut of

SHREE MEDHA DEGREE COLLEGE Page | 21

v. Technical/Production design: The technical design allows the producer

. This Ministry under the able leadership of Shri Piyush

SHREE MEDHA DEGREE COLLEGE Page | 22

SHREE MEDHA DEGREE COLLEGE Page | 23

SGST CGST IGST