( ISSN 2277 - 9809 (online) ISSN 2348 - 9359 (Print) ) New DOI : 10.32804/IRJMSH

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A STUDY ON EFFECTS OF GOODS AND SERVICES TAX ON GARMENT INDUSTRY AFTER TWO YEARS OF IMPLEMENTATION

    2 Author(s):  MS. SHREYA KANODIA , MRS. VINITA AHIRE – KALE

Vol -  10, Issue- 8 ,         Page(s) : 211 - 219  (2019 ) DOI : https://doi.org/10.32804/IRJMSH

Abstract

Garment sector of India is one of the oldest and largest contributors toward the development of the Indian economy, concerning GDP, employment, export promotion, etc. Pre-GST era with the support from the global economy this sector was doing well in India. With the arrival of GST, which is no doubt a daring step by the Government to strengthen the economy, this sector has suffered a jolt. After implementation of the Goods and Services Tax the scenario has changed in the Garment sector. In past two years after implementation of GST, 2017-18 and 2018-19 there were various changes which took place in growth of garment industry. The changes in rate of taxes and its slab rates under GST which also affected end customers. It also included effects caused by unorganized and organized sector under garment industry. The study is done on the basis of primary as well as secondary sources of data collection. Secondary sources are Government generated reports which give overall study of the country and GST Act which is foundation of this study. Literature Reviews are being considered for designing the research methodology. Hypothesis is framed with respect to only suppliers of Garment sector like manufacturers, wholesalers and retailers. Analysis and interpretation is done through some cases which are related to GST in Garment sector though selective sampling. In this study, it can be concluded that GST has positively as well as negatively affected Garment Sector depending upon the nature of the supplier and the misconception by the supplier about the Act.

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