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@article{173857,
        author = {Mr. ROHAN BALANI and Mr. Ronak Rathva and mr. Ganesh. s. Chavan},
        title = {Gst And Its Effects On Cloth Manufacturing Sector},
        journal = {International Journal of Innovative Research in Technology},
        year = {2025},
        volume = {11},
        number = {10},
        pages = {2048-2054},
        issn = {2349-6002},
        url = {https://ijirt.org/article?manuscript=173857},
        abstract = {The implementation of the Goods & Service Tax (GST) in India on July 1, 2017, significantly altered the taxation framework, especially affecting the clothing manufacturing sector. The main goal of GST was to substitute multiple indirect taxes with a single, cohesive system, thereby enhancing compliance and minimizing tax inefficiencies. This study investigates the effects of GST on the industry by analyzing changes in taxation, operational expenditures, supply chain logistics, and financial performance. A mixed-methods strategy was utilized, integrating quantitative surveys and qualitative interviews with clothing manufacturers to evaluate the advantages and obstacles presented by the tax reform. Key results reveal that while GST has simplified tax compliance and removed cascading taxes, it has also placed additional financial pressures on small and medium-sized enterprises (SMEs) because of compliance costs and cash flow challenges.
The research further emphasizes that GST has improved efficiency in supply chain activities, especially by eliminating interstate tax barriers, which has allowed for more streamlined logistics and lowered operational expenses for large manufacturers. Nonetheless, small and medium enterprises (SMEs) have struggled to adapt to digital tax submissions and have experienced delays in receiving input tax credits, which negatively impacts their profitability. The variation in GST rates according to garment pricing has also played a role in shaping pricing strategies and influencing consumer demand. Despite these obstacles, the future outlook implies that as businesses become accustomed to the new system, GST will promote transparency, decrease tax evasion, and enhance the global competitiveness of Indian garment manufacturers. The study wraps up with policy suggestions aimed at alleviating the challenges faced by SMEs while maximizing the advantages of the unified tax system.},
        keywords = {Goods & Service Tax (Gst), Input Tax Credit, Global Competitiveness, Unorganized Sector Impact, clothing and manufacturing industry},
        month = {March},
        }