Study of GST 2.0 & Impact on Textile Industry

Author

Mr. Sanjai S, Dr. Suresh Mani


Abstract

 Goods and Services Tax 2.0 was adopted by the Indian government in September 2025, which was an improvement over the GST regime introduced in 2017 that aimed at simplifying the indirect taxation system through reducing the rates, eliminating exemptions, and digitizing the tax collection process. These reforms improved the affordability of goods, removed the bureaucracy and had the objective of promoting manufacturing activities. Textiles are India’s second-biggest employment provider apart from agriculture and an important export sector. The industry covers the entire value chain including production of fibers and yarns as well as production of clothing and handicrafts. It is very important for generating employment, income and promoting “Make in India” manufacturing initiatives. Thus, the impact of GST 2.0 rate rationalizations on the textile industry will be important. This paper analyses the impact of GST 2.0 rate rationalizations on the Indian textile industry based on secondary data alone.



Keywords

Indirect Taxation, Tax Policy Impact, Fiscal Reforms, Textile Industry, Garment and Apparel Sector, Inverted Duty Structure, Supply Chain Impact


DOI : https://doi.org/10.5281/zenodo.23059398


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References


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