MIND TREE
Q-and-A
GST rates for the entire textile sector have been finally announced, and will come into effect from
July 1st. What is your first reaction to the same…? Do you feel that implementation of GST is going
to impact our industry in any way?
Vignesh Veera Kumar,
Managing Partner,
Atcherra Impex, Tirupur
We welcome the decision as tax
systems have been made a little
bit simple and this migration is
going to eradicate many taxes
and there will be only one tax
in one market. GST is already
implemented in nearly 160
countries because of its easy
taxing system, but we cannot
comment about its pros and
cons for the textile and apparel
industry as it is too early. We
have to wait and it would take
at least 6 months to know the
impact. But as an exporter, we
hope it would be best for us and
we request the Government
of India to carry over all the
benefits rendered in pre-GST to
post-GST along with additional
schemes since this industry
contributes 13 per cent of
foreign exchange and employs
a large number of people in
the country. This is even more
pivotal if we want to compete
with neighbouring countries
like China, Bangladesh and
emerging countries like Vietnam,
Turkey. Therefore, we need the
Government’s support by all
means and we wish Government
speeds up its deal with the
European Union by signing the
FTA for further progress.
Girish V, MD, KnitCraft
International, Gurgaon
The Government’s nonchalant
attitude is killing the industry.
Weak textile policy and strategy
have discouraged many sane
businessmen from investigating
the fundamentals, besides poor
fabric mills and surrounding
infrastructure just adding to the
woes. Lastly, in the short-term,
GST is only a pain with added
documentation. Thanks to our
policy makers, soon this will be
an industry of the past.
Rajesh Surana, Director,
Sabnam Exports, Mumbai
As per my observation, the new
taxation system will help the
industry to get it centralized, but
at the same time, it will leave a
little bit of wrong impression on
small- and medium-level players,
because neither they hire
much manforce nor they have
educated staff who can handle
all these issues. Also, these
activities are a little bit costlier
which may increase their cost.
But for the bigger players, GST
will be positive. The new taxation
policy will also take the smaller
and bigger companies to the
same platform as it will create
transparency in the methods
which will ultimately stop tax
invasion.
Chandra Bhan
Kataria, Founder,
KatBro Corporation,
Greater Noida
Being a manufacturer of flat
knit garments who is serving all
leading brands of the country,
10 Apparel Online India | JULY 1-15, 2017 | www.apparelresources.com
I feel that most of our sales will
be against 5 per cent tax which
is at par in some cases and a
little higher in other cases. We
believe that we must support
and welcome the Government
for one tax, one country. Even if
we have to pay a little more tax
out from our profit, we should
not hesitate as this will be a
contribution to our society and
nation.
Avanish C. Jain,
Director, Beebay Kids
Apparel, Faridabad
We are still trying to understand
how GST will affect us and our
company and for the same,
I’m going to attend a seminar
on this topic to gain better
knowledge about it. We are
into manufacturing, export and
retail and have the GST number
for every segment/company.
But I am still trying to learn how
to implement the new taxation
policy at my work place.
Yogeeta Prabhakar,
MD, Prabhakar Overseas,
Noida
According to me, there should
be more transparency between
the authorities and the industry
because there is lot of confusion
bloating in the environment.
Like after the announcement of
the new tax regulations, many
fabric vendors and exporters are
confused due to form-related
queries. One of the questions
lurking in their mind is whether
they would be able to submit a
written application to avail tax
exemption from GST for cotton
fabric or fabric vendors have
to charge GST and then the
exporter will get refund. I am
not sure but if the exporter is a
manufacturer and is exporting
goods made in his factory, he
can export directly without
payment of GST with a bond
written on the invoice. So, lot of
muddiness is here. I think only
after proper implementation of
the new process, our queries will
be sorted out.
Pawan Gupta, MD,
Bella Casa Fashion &
Retail, Jaipur
I think GST is the best way to
take our taxation policy to
another level. Whereas all this in
one policy will decidedly affect
the industry in a positive manner,
the unorganized segment of
our industry and smaller players
will see this as a problem.
Everyone can see some areas
are affected deeply due to
the announcement of the GST.
But, I would