Published
Jul 3, 2017
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Textile biggies praise India’s biggest tax reform

Published
Jul 3, 2017

The big daddies of the Indian textile industry like Raymonds, Arvind Ltd, Aditya Birla group have all hailed the government for the successful implementation of Goods and Services Tax (GST) in the country.


 As smaller textile bodies and traders protest GST fearing loss of business & jobs, the textile biggies feel that the new tax system will bring in transparency, growth and competitiveness in the Indian textile market.
 
"I would like to congratulate our honourable prime minister and entire Government of India for introducing the biggest transformational tax reform in India, the GST," CMD of Raymond’s Group Gautam Singhania was quoted in a PTI report. "(The GST) would create a seamless and inclusive business environment and will enable exponential growth in the country," he said.

Chairman of Arvind Ltd, the Ahmedabad-based textiles major, Sanjay Lalbhai, also praised the GST at the event. “It will bring transparency in the industry. The GST will help informal sector of the textile industry," said Lalbhai. "This move will push Indian textile Industry to be more competitive and help it to compete with China in the global market," he added.
 
Aditya Birla Group Chairman K M Birla also praised the GST and emphasised on the need to invest in research and development in textiles.
 
"We must step up rigour in skill development to deliver world-class productivity. We must also increase our investment in state-of-the-art research and development,” Birla said.
These industry leaders were speaking at the inaugural session of the India Textiles 2017 seminar in Gujarat.

With just two days into the GST era the textile industry seems to be divided. On one side, branded apparel makers feel that the tax is beneficial to the industry while the small traders across India have gone on strike as the feel that the tax rate levied on textiles would ruin the industry.
 
The Union government has fixed 5% GST on textiles and readymade garments. 

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