Excessive Surge in Pricing in Cotton Affecting the Indian Textile Exports

In the year 2015-2016, the prices of cotton have risen unexpectedly and this has caught the Cotton Spinning Industry, completely off guard. So much so, that the cotton stocks with the manufacturers and suppliers were fairly low, which in turn, will lead to the overall decline in domestic output by double digits. As of now, the industry is expecting a heavy crush of profit margins, due to the increasing imbalance between the supply and demand. To make things worse, the new arrival of the crop will also be delayed this year due to the late sowing of cotton. 

Importance of GST(Goods and Services Tax) For Textile Industry

The Goods and Services Tax or GST is a form of Value Added Tax which is predisposed to include all the indirect taxes and would be the same for every region of the country unlike the VAT. Simply put, the GST will allow the state government to get a share that was earlier entitled only to the centre in the form of Central Sales Tax.The Goods and Services Tax, if and when approved will benefit the textile industry in more than one ways, and hence it is only just to study the importance of GST in this context.