'GST to remove current disparity in cotton, MMF excise duty'
Dated 19th December, 2016
The implementation of the Goods and Services Tax (GST), now likely in second half of next year, will create a level playing field by removing the disparity of excise duty between cotton and man-made fibre (MMF) sectors, according to an expert. This will spur growth in the country’s textile sector, which contributed nearly 15 per cent to exports in 2015-16.
“It (GST) will remove the current disparity of excise duty between cotton and man-made fibre. This will also spur growth and the country is expected to again surpass Bangladesh and Vietnam in garment exports in the next three years,” said S Kannan, CFO, Brands and Retail, Arvind Lifestyle Brands. He was addressing the Confederation of Indian Industry (CII) annual CFO Conclave on the topic ‘India Competitiveness: Growth Opportunities and Challenges’ in Bengaluru.
He said chief finance officers (CFO) must prepare their organisations for regulatory changes that would come in with the implementation of the GST. According to him, “GST, though a huge opportunity for companies, can be a minefield as well if an organisation is not equipped to implement it”.
Murali Ganesh, CFO, ITC Foods, said the “GST will lead to a paperless taxation process that will reduce errors and bring in transparency, widening the scope of the tax base.”
Last fiscal, India’s textile and apparel exports touched $40 billion and the industry is aiming to reach $223 billion in export value by 2021. (RKS)