INDIA’S KNITWEAR EXPORTERS STRUGGLE WITH CASH FLOW AS GST SUCKS MONEY FROM CURRENT ACCOUNTS
March 1st, 2018
India’s new Goods and Services Tax (GST) system has severely disrupted tax refund payments and duty drawbacks to exporters, leading to higher production costs and a 30% dip in knitwear exports, experts have warned.
Since its adoption in July 2017, the new value added tax system has been criticised for its complexity – with the knitwear sector having to deal with four separate tax brackets - and forcing small business to invest in online accounting infrastructure that they cannot afford and are ill equipped to manage.
“For the domestic clothing sector, the ...
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