Home / Knowledge / News / Textiles / Imposition of RGST draws negative reactions
Imposition of RGST draws negative reactions
Oct '10
Producers and exporters of bed wear items have agitated against the applicability of the Reformed General Sales Tax (RGST) regime to textile industry, as according to them, the move would cause the already sick textile industry to shut down permanently.

Exporters apprehended that, the amount so collected by way of tax will be diverted towards governmental functioning and for flood relief, due to which a large chunk of sector's funds would get blocked with the Sales Tax Department, for years together.

The government has not yet been able to clear the tax refunds outstanding for previous years, for reason of non-availability of funds; exporters stated and thus, discounted the chances of government paying tax refunds for the current year, post implementation of the RGST since October 1.

A few manufacturers-cum-exporters, who proposed strongly agitating against this imposition of RGST, stated that the exporters should initiate industrial action to protest against the government's irrational decision, which would scale down their businesses over the next two to three months.

They further stated that, applying RGST to the entire textile chain would persuade dummy exporters to draw sizeable financial gains through fake invoicing, while adversely affecting the real exporters.

Tax experts have questioned the motives behind this move by asking that, if the government intends to refund the sum collected by way of tax to exporters, what is the meaning of collecting the same through imposition of RGST.

Fibre2fashion News Desk - India

Must ReadView All

Textiles | On 24th Jan 2017

Textile industry demands relaxation of laws from Budget

The upcoming Union Budget 2017-18 should focus on relaxing certain...

President Donald Trump; Courtesy: White House

Textiles | On 24th Jan 2017

US sets ball rolling for withdrawal from TPP

President Donald Trump has set the ball rolling for withdrawal of the ...

Textiles | On 24th Jan 2017

Indian cotton consumption estimated at 290 lakh bales: CAI

The domestic consumption of cotton during the crop season 2016-17...

Interviews View All

Kamlesh Vaghela
RK Textiles

Very few machinery manufacturers have R&D units

Shawn Honeycutt
Bolger & O'Hearn

‘The Indian market is interesting and rather persistent in seeking new...

Nuno Venda

‘There has been an increase in demand for water based inks, rather than...

Marcel Alberts

Coating at a fibre level is a practice not usually seen in the...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Sonam & Paras Modi

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

January 2017

January 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


Subscribe today and get the latest News update in your mail box.
Advanced Search